Dow Chemical Reports Ownership Restructuring Of Dow Corning

(RTTNews) - The Dow Chemical Co. (DOW) Friday reported the signing of definitive agreements to restructure the ownership of Dow Corning Corp. Dow will become the 100 percent owner of Dow Corning, currently a 50:50 joint venture between Dow and Corning (GLW). Dow and Corning will maintain their current equity stake in Hemlock Semiconductor Group.

The deal is expected to be accretive to operating earnings per share, cash flow from operations and free cash flow in the first full year after the close of the transaction.

The transaction is expected to close in the first half of 2016. Dow Corning's corporate headquarters will remain in Auburn, Michigan.

Unanimously approved by Dow's board of directors, the transaction is highly complementary to the strategic objectives of Dow and offers significant potential to enhance value for shareholders.

With Dow and Dow Corning coming together, Dow will extend its participation in Consumer Solutions and Infrastructure Solutions segments by increasing Dow's product offerings in many attractive end use applications like building and construction, consumer care, and automotive.

Dow is uniquely positioned to capture $400 million in run rate annual cost and growth synergies from the restructured ownership of Dow Corning.

The transaction is expected to yield more than $1 billion in additional annual EBITDA at full run-rate synergies.