Dow Chemical To Sell Sodium Borohydride Business To Vertellus

(RTTNews) - Chemical products maker Dow Chemical Co. (DOW) agreed Friday to sell its global Sodium Borohydride business to Vertellus Specialty Materials LLC and its Findlay, Ohio-based polyolefin films plant to Valfilm North America, Inc., an unit of Valgroup Packaging Solutions for total proceeds around $225 million.

The deals, subject to regulatory approvals, are expected to close 8in the first quarter of fiscal 2015.

"We continue to demonstrate our market-driven focus by selectively shifting our portfolio away from businesses that - while valuable - are no longer a strategic fit," Chairman and CEO Andrew Liveris said in a statement.

The company noted that about 75 global employees are expected to transition employment status to Vertellus as part of the deal. Vertellus has also agreed to honor customer and supplier contracts and related deals.

Dow Chemical had announced in early October that it was looking to divest Angus Chemical, Sodium Borohydride and AgroFresh as part of its divestiture plan. Meanwhile, Dow had already decided in September to close the polyolefin films plant at the end of January 2015, impacting about 70 employees. Valfilm now intends to restart the facility in February 2015.

The sales are a part of the company's ongoing focus to maximize value across its integrated portfolio by reducing exposure to non-strategic businesses and assets. It continues to selectively shift portfolio towards targeted growth markets.

Midland, Michigan-based Dow Chemical, which has been selling off assets and streamlining its operations, had increased in mid-November its divestiture target range to $7 billion to $8.5 billion, which it expects to complete by mid-2016.

Earlier, the company had planned to divest assets worth $4.5 billion to $6 billion by year-end 2015. The proceeds are designed to remunerate shareholders, reduce debt, and fund growth.

"By narrowing our market participation and preferentially funding those businesses in which we have strong competitive positions in attractive markets, we continue to increase value that can be redirected for more strategic uses, such as funding targeted growth, reducing debt and rewarding shareholders," Liveris added.

DOW closed Thursday's regular trading session at $49.77, up $0.70 on a volume of 5.08 million shares.