As part of its plan of shedding non-core businesses, chemical supplier Dow Chemical Co. is selling its polypropylene licensing and catalysts business to smaller peer W.R. Grace & Co.for US$500 million.
Dow plans to sell non-core businesses worth about $1.5 billion by next year.
The polypropylene licensing and catalysts business provides technology and catalysts used to manufacture plastics and synthetic fabrics.
Under the deal, W.R. Grace will acquire Dow Chemical's polypropylene catalysts manufacturing plant at Norco, Louisiana and customer contracts, licenses, intellectual property, and inventory.
"Today's announcement is another clear demonstration of Dow's rigorous focus on selectively shifting our portfolio away from assets that are no longer a strategic fit and optimizing their value," said Andrew Liveris, chairman and CEO of Midland, Mich.-based Dow. "Our accelerated strategy is focused on narrowing our market participation and preferentially funding our select growth businesses with strong competitive positions in attractive markets such as electronics, water, packaging and agricultural sciences. We are planning further proactive divestments in the next 12 months in our relentless pursuit of rewarding shareholders."
W.R. Grace is based in Columbia, Md.