Dow Advances Strategic Focus With Sale Of Flexible Packaging Laminating Adhesives Business To Arkema; The Transaction Value Is $150M Or Approximately 10 Times Forecasted 2024 EBITDA
Portfolio Pulse from Benzinga Newsdesk
Dow (NYSE:DOW) has agreed to sell its flexible packaging laminating adhesives business to Arkema for $150 million, approximately 10 times its forecasted 2024 EBITDA. This sale includes five manufacturing sites across Italy, the United States, and Mexico. The transaction, expected to close by the end of 2024, aligns with Dow's strategy to focus on core, high-value businesses and supports its Decarbonize & Grow and Transform the Waste strategies. Dow will retain its water-based and acrylic adhesives businesses, aligning with its market growth strategies.
May 02, 2024 | 12:23 pm
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Dow sells its flexible packaging laminating adhesives business to Arkema for $150M, focusing on strategic growth and decarbonization.
The sale of the flexible packaging laminating adhesives business to Arkema for $150 million allows Dow to concentrate on its core, high-value businesses. This strategic move is expected to positively impact Dow's stock in the short term by demonstrating a focused approach to growth and sustainability. The proceeds will support Dow's Decarbonize & Grow and Transform the Waste strategies, potentially leading to more than $3 billion in annual earnings growth by 2030. The transaction's alignment with Dow's strategic priorities and the significant valuation (approximately 10 times forecasted 2024 EBITDA) suggest a positive outlook for Dow's financial health and operational focus.
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