Dow announces that it has entered into a definitive agreement to divest certain U.S. Gulf Coast marine and terminal operations and assets to Vopak Industrial Infrastructure Americas, a joint venture of Royal Vopak and BlackRock's Global Energy & Power Infrastructure Fund, for $620 million. The transaction includes marine and storage terminal operations and assets at Dow’s sites in Plaquemine and St. Charles, Louisiana, and Freeport, Texas. Royal Vopak is a global independent tank storage company with experience in independent storage and infrastructure services.
“Today’s announcement is another demonstration of our ongoing commitment to applying a best-owner mindset, supported by rigorous benchmarking and a focus on disciplined capital allocation,” says Jim Fitterling, chairman and chief executive officer of Dow. “The transaction will enable Dow to deploy cash towards value-enhancing opportunities in our core businesses consistent with our capital allocation priorities including ensuring safe and reliable operations and paying down additional debt.”
In connection with the announcement, Dow and Vopak Industrial Infrastructure Americas reportedly enter into long-term service agreements, which the company says ensure reliable and cost-advantaged services for existing Dow businesses at the in-scope sites.
The transaction is expected to close in the fourth quarter of 2020, subject to customary regulatory approvals and other closing conditions in the United States and the European Union. Normal operations will continue throughout the divestment process.
Dow reportedly continues to evaluate its ownership of non-revenue-generating assets across its global portfolio. On July 6, 2020, the company announced a signed agreement to sell its rail infrastructure and assets at six North American sites. On July 23, 2020, the company announced it is taking other actions to exit non-competitive assets.
For more information, visit: www.dow.com
