Dow Announces Agreement to Sell its 50% Ownership in DowAksa Joint Venture

Rhea-AI Summary

Dow (NYSE: DOW) has announced an agreement to sell its 50% stake in DowAksa Advanced Composites Holdings BV to joint venture partner Aksa Akrilik Kimya Sanayii A.Ş. for $125 million. The transaction reflects an enterprise value of approximately 10x the estimated 2025 operating EBITDA. The joint venture, established in 2012, is being divested as part of Dow's strategy to focus on core, high-value downstream businesses. The sale proceeds will support Dow's balanced capital allocation approach. The deal is expected to close in Q3 2025, subject to regulatory approvals and closing conditions. BNP Paribas served as Dow's exclusive financial advisor for this transaction.

Positive

• Sale proceeds of $125 million strengthen Dow's financial position
• Transaction values the business at 10x estimated 2025 operating EBITDA, indicating a favorable valuation
• Strategic alignment with Dow's focus on core, high-value downstream businesses

Negative

• Divestment reduces Dow's exposure to the advanced composites market
• Loss of potential future growth opportunities in the joint venture

• Dow agrees to sell its 50% interest in DowAksa Advanced Composites Holdings BV (DowAksa) to its 50/50 joint venture partner Aksa Akrilik Kimya Sanayii A.Ş.
• Proceeds will be used to support Dow's balanced capital allocation approach

MIDLAND, Mich., June 2, 2025 /PRNewswire/ -- Dow (NYSE: DOW) today announced that it has signed a sale and purchase agreement to sell its 50% interest in DowAksa Advanced Composites Holdings BV (DowAksa) to Aksa Akrilik Kimya Sanayii A.Ş., a company of Akkök Holding. Aksa Aksa Akrilik Kimya Sanayii A.Ş., the other 50% joint venture partner, has agreed to acquire Dow's 50% interest. Dow's proceeds from the sale are expected to be $125 million, which reflects, after accounting for debt, an enterprise value of approximately 10x the estimated 2025 operating EBITDA.

Dow's decision to exit the joint venture, which was formed in 2012, is consistent with Dow's best-owner mindset strategy of focusing on its core, high-value downstream businesses. The proceeds from the transaction will be used to support the Company's balanced capital allocation approach.

The sale is expected to close in the third quarter of 2025, subject to customary regulatory approvals and other closing conditions.

BNP Paribas acted as exclusive financial advisor to Dow on this transaction.

About Dow
Dow (NYSE: DOW) is one of the world's leading materials science companies, serving customers in high-growth markets such as packaging, infrastructure, mobility and consumer applications. Our global breadth, asset integration and scale, focused innovation, leading business positions and commitment to sustainability enable us to achieve profitable growth and help deliver a sustainable future. We operate manufacturing sites in 30 countries and employ approximately 36,000 people. Dow delivered sales of approximately $43 billion in 2024. References to Dow or the Company mean Dow Inc. and its subsidiaries. Learn more about us and our ambition to be the most innovative, customer-centric, inclusive and sustainable materials science company in the world by visiting www.dow.com.

For further information, please contact:

Glynna Mayers                                                         
gmayers@dow.com        

X: https://twitter.com/DowNewsroom 
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^®TM Trademark of The Dow Chemical Company ("Dow") or an affiliated company of Dow

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SOURCE The Dow Chemical Company

FAQ

What is the value of Dow's sale of its DowAksa stake?

Dow will receive $125 million for its 50% stake in DowAksa, with the transaction reflecting an enterprise value of approximately 10x estimated 2025 operating EBITDA.

When will Dow's sale of DowAksa stake close?

The sale is expected to close in the third quarter of 2025, subject to customary regulatory approvals and other closing conditions.

Who is buying Dow's stake in DowAksa?

Aksa Akrilik Kimya Sanayii A.Ş., a company of Akkök Holding and the existing 50% joint venture partner, is acquiring Dow's stake.

How will Dow use the proceeds from the DowAksa sale?

The proceeds will be used to support Dow's balanced capital allocation approach.

Why is Dow selling its stake in DowAksa?

The sale aligns with Dow's best-owner mindset strategy of focusing on its core, high-value downstream businesses.