ERJ staff report (R&PN)
Midland, Michigan -- Dow Chemical Co. has found a buyer for its Styron Division, which includes its SBR and SB latex businesses, and has been for sale since July 2009.
Private equity firm Bain Capital Partners, based in Boston, will acquire the division for $1.63 billion, Dow said. The company created Stryon last July out of a variety of business: polystyrene, acrylonitrile butadiene styrene, styrene acrylonitrile and expandable polystyrene; emulsion polymers; polycarbonate and compounds and blends; synthetic rubber; and automotive plastics, which includes Velvex reinforced elastomer.
When it announced its intention to sell the operations, which generate about $3.5 billion in annual sales, Dow said it expected to obtain a price of $1 billion to $2 billion. The Styron Division has 40 plants and 1,500 employees throughout the world.
The deal is scheduled to close by August. Dow has an option to keep up to 15 percent of the equity of Styron. Several long-term supply, service and purchase agreements are part of the transaction.
Dow indicated it will use the proceeds of the sale for debt reduction.
From Rubber & Plastics News (A Crain publication)
Press release from Dow