Dow Chemical Co. has sold a plastic pigment business to materials and laminates supplier Omnova Solutions Inc.
No purchase price was disclosed in the deal between Midland, Mich.-based Dow a leading plastics and chemicals maker and Omnova of Fairlawn, Ohio. The business being sold produces hollow-sphere plastic pigments.
Hollow-sphere plastic pigments are formulating ingredients used to create opacity and gloss in coated paper, said Omnova spokesperson Sandi Noah.
The pigments are very complimentary to our existing coating chemicals portfolio, Noah said by phone Sept. 10.
Under terms of the sale, Dow will continue making the pigments for Omnova at an existing location. Omnova will handle sales and marketing, but no machinery or employees will be moved.
In a brief Sept. 10 news release, Dow said the sale is needed to meet Federal Trade Commission requirements surrounding Dow's recent acquisition of specialty chemicals maker Rohm and Haas Co. of Philadelphia. The Dow-Omnova deal still needs FTC approval, officials said.
The deal is believed to be Omnova's first acquisition in several years. Earlier this year, the firm sold a film unit in Dupo, Ill., to RTP Co.
In the first half of its fiscal 2009, ended May 31, Omnova's sales fell 22 percent to $321.5 million vs. the year-ago period. But the firm posted a $5 million first-half profit after losing $6 million during the same period in 2008.
On Wall Street, Omnova's per-share stock price fell under $1 in early March, but rebounded above $6 in early August and was at $5.20 in early trading Sept. 11.
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