* Sale part of Dow's plan to divest non-core businesses
* Deal expected to close by year end
* W.R. Grace shares up 2 pct
Oct 11 Dow Chemical Co will sell its
polypropylene licensing and catalysts business to smaller peer
W.R. Grace & Co for $500 million as the U.S. chemical
maker looks to shed its non-core businesses.
The sale is a part of Dow Chemical's plan to sell non-core
businesses worth about $1.5 billion by next year.
The business provides technology and catalysts to make
polypropylene, used to manufacture plastics and synthetic
W.R. Grace shares were up 2 percent on Friday morning on the
New York Stock Exchange.
Under the deal, W.R. Grace will acquire Dow Chemical's
polypropylene catalysts manufacturing plant at Norco, Louisiana
and customer contracts, licenses, intellectual property and
Dow Chemical Chief Executive Andrew Liveris said the company
would divest more businesses in the next 12 months and focus on
making high-margin products for markets such as electronics,
water, packaging and agriculture.
Like bigger rival DuPont, the company is focusing on
agriculture products such as biotech seeds and pesticides, the
demand for which is being driven by an expanding global
DuPont said in July that it plans to exit its titanium paint
pigments business to concentrate on its agriculture products
Dow Chemical, which has divested non-core businesses worth
about $8 billion in revenue since 2009, has said it would
consider selling its epoxy, construction and chlorine
About 90 Dow Chemical employees are expected to move to W.R.
Grace, which makes specialty catalysts and additives used by
W.R. Grace said it expected the transaction to close by the
end of the year, pending regulatory approvals.