HOUSTON--(BUSINESS WIRE)--The Dow Chemical Company (NYSE: DOW) today announced an increased divestiture target aligned to further enhance the value of its portfolio and support the Company’s market-driven, integrated strategy.
On track to complete its goal of realizing $4.5 billion to $6 billion in proceeds by year-end 2015, and with additional portfolio management actions underway, Dow is now increasing its divestiture target to $7 billion to $8.5 billion to be complete by mid-2016. Since 2013, the Company has generated $2.5 billion in proceeds, reallocating this capital to remunerate shareholders, fund growth and reduce debt.
“As part of our ongoing process to drive value through a best owner mindset and using economic value add as our lens, we are consistently looking across our portfolio to identify additional sources of long-term value creation and maximize the returns on the capital we invest,” said Andrew N. Liveris, chairman and chief executive officer. “Our focus on continuously and increasingly rewarding shareholders is at the core of every decision and action we take.”
Dow continues to assess opportunities to enhance the value created across its portfolio, including rationalizing its position in major joint ventures and divesting Dow businesses that, while valuable, no longer align with Dow’s integration strategy.
In line with this strategy, and as announced earlier today, Dow plans to reduce its equity position in all of its Kuwait joint ventures, which will release capital for other strategic purposes including shareholder remuneration. The Company also announced the signing of a definitive agreement for the divestiture of its ANGUS Chemical business for $1.215 billion in net proceeds.
About Dow
Dow (NYSE: DOW) combines the power of science and technology to passionately innovate what is essential to human progress. The Company is driving innovations that extract value from the intersection of chemical, physical and biological sciences to help address many of the world's most challenging problems such as the need for clean water, clean energy generation and conservation, and increasing agricultural productivity. Dow's integrated, market-driven, industry-leading portfolio of specialty chemical, advanced materials, agrosciences and plastics businesses delivers a broad range of technology-based products and solutions to customers in approximately 180 countries and in high growth sectors such as packaging, electronics, water, coatings and agriculture. In 2013, Dow had annual sales of more than $57 billion and employed approximately 53,000 people worldwide. The Company's more than 6,000 products are manufactured at 201 sites in 36 countries across the globe. References to "Dow" or the "Company" mean The Dow Chemical Company and its consolidated subsidiaries unless otherwise expressly noted. More information about Dow can be found at www.dow.com.
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