Dow Chemical To Divest Global Sodium Borohydride Business To Vertellus

(RTTNews) - Chemical products maker Dow Chemical Co. (DOW) has agreed to sell its global Sodium Borohydride business to Vertellus Specialty Materials LLC and its polyolefin films plant in Findlay, Ohio to Valfilm North America, Inc., an unit of VALGROUP Packaging Solutions. Both transactions are likely to complete in the first quarter of 2015 pending regulatory approvals. Combined proceeds from the transactions total around $225 million.

Earlier, Dow had announced its plan to divest its Sodium Borohydride business on October 2, 2014, as part of its ongoing focus to maximize value across its integrated portfolio by reducing exposure to non-strategic businesses and assets. Both transactions are part of Dow's ongoing drive to deliver $7 billion to 8.5 billion in gross proceeds by mid-2016.

The Sodium Borohydride sale includes a manufacturing facility in Elma, Washington, the associated business, inventory, customer contracts and lists, process technology, business know-how and certain intellectual property. About 75 employees worldwide are believed to transition employment status to Vertellus as part of the deal. Pursuant to the purchase agreement, Vertellus would honor customer and supplier contracts and related deals.

The sale of the Findlay plant comprises assets and technology that produce a wide-variety of polyolefin films. During September 2014, Dow decided to shut down the facility at January 2015 end, impacting nearly 70 employees. Valfilm plans to restart the facility in February 2015. The transaction is dependent on the final approval for all incentives by the State of Ohio.