Dow Chemical Co. Completes Restructuring of Dow Corning Unit
MIDLAND, MI - The Dow Chemical Co. announced the successful completion of the transaction to restructure the ownership of Dow Corning. Dow is now 100 percent owner of Dow Corning’s silicones business, which had 2015 revenues of greater than $4.5 billion and is expected to generate more than $1 billion of annual EBITDA for Dow at full run-rate synergies.
A pioneer, and current leader in silicones, silicon-based technology and innovation, Dow Corning was previously a 73-year 50:50 joint venture between Dow and Corning Inc. Dow and Corning will maintain their equal proportional equity interests in Hemlock Semiconductor Group, a polysilicon producer in which Dow Corning was the majority shareholder.
Dow Corning will operate as a wholly owned subsidiary of Dow and will be headquartered with Dow in Midland, MI.
As previously announced, Dow Vice Chairman and Chief Financial Officer Howard Ungerleider will serve as Chairman of Dow Corning in addition to his current responsibilities. Dow Vice President Mauro Gregorio, who leads the Dow Corning integration team for Dow, will serve as Chief Executive Officer of Dow Corning. Andy Tometich, a 27-year Dow Corning veteran, has been named Business President of the silicones business.
Dow’s immediate focus is on seamlessly integrating Dow Corning into its existing operations and quickly capturing full growth and cost synergies. Leaders of both companies have worked together to define the organizational design for rapid post-close implementation. Dow expects the transaction to be accretive to operating earnings per share (EPS), cash flow from operations and free cash flow in the first full year after transaction close.