Dow takes plastics additives unit off selling block

PLASTICS & RUBBER WEEKLY

Published: September 18, 2013 12:30 pm ET

Related to this story

Topics Materials, Mergers & Acquisitions, Materials Suppliers
Companies & Associations Dow Chemical Co.

Dow Chemical Co. has taken its plastics additives business off the market, apparently because it did not get sufficiently high bids for the division.

The Midland, Mich.-based chemical giant had signaled the additives operation was for sale, along with its polypropylene licensing and catalysts business unit, back in March.

At the time Chairman and CEO Andrew Liveris described the decision to sell the business units as a "proof point of Dow's rigorous focus on return on capital, and…squarely in line with commitments we made earlier this year."

However in a presentation arranged by Credit Suisse on Sept. 17, Liveris said the company was "quite comfortable" running the additives operation for cash.

According to a transcript of the meeting, Liveris said: "This is a valuable business that is currently being undervalued by buyers in the market. As a result, we are pulling the transaction off the table and we are quite comfortable with running this business for the next several years."

Liveris declined to reveal what offers had been made for the additives division, although Bloomberg said analysts estimated it was worth around $520 million.

The business generated annual revenues of around $680 million and $80 million in earnings before interest, tax, depreciation and amortization.


Comments

Dow takes plastics additives unit off selling block

PLASTICS & RUBBER WEEKLY

Published: September 18, 2013 12:30 pm ET

Post Your Comments


Back to story


More stories

Image

Coveris changes culture, eyes IPO

November 20, 2014 1:40 pm ET

CEO Gary Masse has a simple message, and some new math, for everyone at Coveris Holdings Corp. Get on board or get out of the way.    More

Image

Total to buy majority stake in Polyblend

November 20, 2014 10:04 am ET

French oil and gas giant Total SA will buy a 68 percent stake in Germany's Polyblend GmbH, a subsidiary of Polymer-Chemie GmbH.    More

Image

Silica can replace plastic microbeads

November 19, 2014 6:00 am ET

As cosmetics and soap makers face pressure to remove plastic microbeads from their products, Evonik Industries touts its new silica-based microbeads...    More

Chase Plastics building new Indiana distribution center

November 18, 2014 11:13 am ET

Resin distributor Chase Plastics will invest $5.4 million to build a new distribution center in South Bend, Ind.    More

Image

Private equity fuels acquisition market

November 18, 2014 11:52 am ET

Plastics firms and outside investors with money to spend increasingly have done so in the plastics industry for the last quarter-century — and p...    More

Market Reports

Plastics in Brazil - State of the Industry Report

This in-depth report examines the Brazilian plastics industry from a historical and geographical context. Our analysts provide insight on economic trends and forecasts, growing manufacturing sectors that utilize plastics, private investment opportunities, market environment challenges, and innovations in R&D.

Data tables and charts on producer prices, trade, plastics production and end market indicators is also included.

Learn more

Plastics Recycling Trends in North America

This report is a review and analysis of the North American Plastics Recycling Industry, including key trends and statistics based on 2013 performance. We examine market environment factors, regulatory issues, industry challenges, key drivers and emerging trends in post-consumer and post-industrial recycling.

Learn more

Injection Molders Market Report & Ranking 2014

This special package contains our 132-page 2014 Market Report on the Injection Molding segment and our exclusive 2014 RANKINGS database of 500+ Injection Molders for a discounted package price.

Learn more

Upcoming Plastics News Events

January 14, 2015 - January 14, 2015Plastics in Automotive

February 4, 2015 - February 6, 2015Plastics News Executive Forum 2015

June 2, 2015 - June 3, 2015Plastics Financial Summit - Chicago 2015

September 16, 2015 - September 18, 2015Plastics Caps & Closures - September 2015

October 27, 2015 - October 29, 2015Plastics Financial Summit - New York - 2015

More Events