MIDLAND, MI/BOSTON - The Dow Chemical Co, Midland, MI, and Bain Capital Partners, a leading global private equity firm headquartered in Boston, MA, have signed a definitive agreement under which Dow's Styron Division will be divested to an affiliate of Bain Capital for $1.63 billion. As part of the transaction, Dow has an option to receive up to 15 percent of the equity of Styron as part of the sale consideration. Additionally, the transaction includes several long-term supply, service and purchase agreements that will generate substantial value for both Dow and Styron. The transaction is expected to close by August 2010.

 

As a standalone, privately held business, Styron will be a leading diversified chemicals and plastics company with attractive global positions in a related set of markets. It will have a unique product portfolio with a large presence in the styrenics value chain. Styron brings together a balanced portfolio of plastics, rubber and latex businesses that share feedstocks, operations, customers and end users. The company will benefit from a leadership position in its two flagship products, polystyrene and latex, as well as global scale, customer relationships and a robust innovation pipeline.

 

Styron is expected to have approximately $3.5 billion in revenue (based on 2009 data), with over 40 manufacturing plants in all geographic regions and approximately 1,900 employees. Its businesses serve a diverse customer base in markets such as automotive, appliances, packaging, paper and board, carpet, durables, electronics, optical media, tires, and technical rubber.

 

Businesses and products in Styron include: styrenics - polystyrene (PS), acrylonitrile butadiene styrene (ABS), styrene acrylonitrile (SAN) and expandable polystyrene (EPS); emulsion polymers (paper and carpet latex); polycarbonate (PC) and compounds and blends; synthetic rubber; and automotive plastics including PULSE™ engineering resins, MAGNUM™ acrylonitrile butadiene styrene, INSPiRE™ performance polymers and VELVEX™ reinforced elastomer. Also included will be some styrene monomer assets.