Dow Chemical Closes Divestment Of AgroFresh - Quick Facts

(RTTNews) - Dow Chemical Co. (DOW) announced that it completed sale of AgroFresh, its post-harvest specialty chemical business, to Boulevard Acquisition Corp., a public investment vehicle, formed by Avenue Capital Group, for more than $900 million.

In addition to cash and stock at closing, Dow expects to receive significant ongoing cash payments related to service and other agreements with AgroFresh and a $50 million cash earn out if AgroFresh achieves certain targets - putting the total value of the transaction over $1 billion.

The transaction has been unanimously approved by the boards of directors of both companies, was approved by a vote of Boulevard's shareholders on July 29, 2015, and officially closed July 31, 2015.

With this transaction and the upcoming completion of the Dow Chlorine Products merger with Olin, Dow has significantly exceeded its prior stated goal of realizing $7 billion to $8.5 billion of divestments, with the total now approaching more than $12 billion in pre-tax proceeds.

Following the close of the transaction, AgroFresh has become a wholly-owned subsidiary of Boulevard and Boulevard has been renamed AgroFresh Solutions, Inc. (AGFS, AGFSW). Dow continues to retain a non-consolidated minority ownership position in the new entity.