Dow Unveils Partnership with Macquarie, Sells Gulf Coast Asset Stake in $2.4B Deal
Dow (NYSE:DOW) +5.1% pre-market Monday after saying it agreed to sell a 40% equity stake in some U.S. Gulf Coast infrastructure assets, with an option to increase its equity stake to 49% within six months of closing, to Macquarie Asset Management.
Dow (DOW) expects to receive ~$2.4B in initial cash proceeds based on the initial transaction, with potential to receive up to ~$3B in total.
The companies will launch a new partnership, Diamond Infrastructure Solutions, which will aim to "leverage Dow's operational excellence and Macquarie Asset Management's infrastructure and energy expertise to generate growth opportunities by opening access to Dow's U.S. Gulf Coast sites to third party customers."
Diamond will be comprised of certain non-product producing assets - power and steam production, pipelines, environmental operations and general site infrastructure - located at five of Dow's (DOW) manufacturing sites on the U.S. Gulf Coast: Freeport, Texas City, and Seadrift in Texas, as well as Plaquemine and St. Charles in Louisiana.
Dow (DOW) said the deal represents another step in the evaluation of its ownership of non-product producing assets across its global portfolio, building on the previous sales of the company's rail infrastructure assets at six North American sites and of its U.S. Gulf Coast marine and terminal operations and assets.