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Dow Announces Agreement to Sell its 50% Ownership in DowAksa Joint Venture
DOWDow(DOW) Prnewswire·2025-06-02 11:11

Group 1 - Dow has signed a sale and purchase agreement to sell its 50% interest in DowAksa Advanced Composites Holdings BV to Aksa Akrilik Kimya Sanayii A.Ş. for expected proceeds of 125million,reflectinganenterprisevalueofapproximately10xtheestimated2025operatingEBITDA[1][2]−ThedecisiontoexitthejointventurealignswithDow′sstrategytofocusoncore,high−valuedownstreambusinesses,andtheproceedswillsupportthecompany′sbalancedcapitalallocationapproach[2][4]−Thesaleisanticipatedtocloseinthethirdquarterof2025,pendingcustomaryregulatoryapprovalsandotherclosingconditions[2]Group2−Dowisaleadingmaterialssciencecompanywithafocusonhigh−growthmarketssuchaspackaging,infrastructure,mobility,andconsumerapplications,deliveringsalesofapproximately125 million, reflecting an enterprise value of approximately 10x the estimated 2025 operating EBITDA [1][2] - The decision to exit the joint venture aligns with Dow's strategy to focus on core, high-value downstream businesses, and the proceeds will support the company's balanced capital allocation approach [2][4] - The sale is anticipated to close in the third quarter of 2025, pending customary regulatory approvals and other closing conditions [2] Group 2 - Dow is a leading materials science company with a focus on high-growth markets such as packaging, infrastructure, mobility, and consumer applications, delivering sales of approximately 43 billion in 2024 [3] - The company operates manufacturing sites in 30 countries and employs around 36,000 people, emphasizing its commitment to sustainability and profitable growth [3]