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

Negri Bossi's new owners may 'bring significant manufacturing' to US

April 16, 2014 1:09 pm ET

Italian plastics equipment major Negri Bossi may “bring significant manufacturing of injection molding machines back to the United...    More

New Tigre, ADS JV aims to open more doors for Tigre in US

April 16, 2014 12:15 pm ET

A new joint venture between Tigre S.A. Brazil, a leading PVC pipe maker, and Advanced Drainage Systems Inc., the world's largest high-density...    More

Indorama's purchase of Sasa to give wider access to multiple markets

April 16, 2014 10:07 am ET

PET maker Indorama Ventures Public Co. Ltd. is expanding in Turkey with the acquisition of a majority of Sasa Polyester Sanayi.    More

Associated Materials Group withdraws plan for initial public offering

April 16, 2014 10:16 am ET

Associated Materials Group Inc. of Cuyahoga Falls, Ohio, a manufacturer and distributor of exterior residential building products in the United...    More

Axiall resumes operations at damaged Lake Charles PVC feedstock plant

April 15, 2014 4:41 pm ET

Axiall Corp. has resumed operations at its PVC feedstock plant that was damaged by a fire in December.
More

Market Reports

Thermoformed Packaging 2014 Market Review & Outlook North America

This in-depth report provides analysis and discussions of economic and political conditions, market trends, legislative/regulatory activity impacting supply and demand, business opportunities and threats, materials pricing, manufacturing technology, as well as strategies being implemented by thermoformed packaging companies. In addition, there are reviews of 25 leading thermoformers in the packaging segment, assessing their growth initiatives and performance metrics over 10 years.

Learn more

Automotive Market Review and Outlook 2014 The Americas

This 75-page report features in-depth analysis of the automotive industry for the Americas. It includes discussions of market trends, legislative/regulatory activity impacting production and threats as well as design strategies being implemented by the major automakers. Detailed charts and data tables outline North American automotive production over the last five years.

Learn more

Plastics Building & Construction Market Review and Outlook 2014 with MS Excel chart data

This report provides in-depth analysis of the plastic building and construction market for North America, including discussions of trends, opportunities, threats and the latest developments in construction trends that impact plastics processors.

Learn more

Upcoming Plastics News Events

May 6, 2014 - May 8, 2014Plastics in Medical Devices 2014

May 12, 2014 - May 12, 2014Plastics News Brazil Pharma Summit

September 10, 2014 - September 12, 2014Plastics Caps & Closures 2014

February 3, 2015 - February 7, 2015Plastics News Executive Forum 2015

More Events