Dow Announces Divestiture of its Acetone Derivatives Business
Dow has announced that it has reached an agreement for the divestiture of its Acetone Derivatives business to ALTIVIA Ketones & Additives, LLC, an affiliate of ALTIVIA headquartered in Houston, Texas. The divestiture includes production assets located in Institute, W.Va., in addition to the site infrastructure, land, and utilities. Dow will remain a tenant on the Institute site, retaining ownership of certain manufacturing assets.
“This divestiture illustrates Dow’s disciplined approach to portfolio management with a best owner mindset,” said Jim Fitterling, chief executive officer of Dow. “It is beneficial to both parties and, in the case of Dow, is directly aligned with our more focused portfolio and goal of driving a higher return on invested capital.”
According to Dow, the transaction enables the acetone derivatives business to continue reliably and safely serving its customers. Additionally, the company stated that the transaction allows the Institute site to continue providing site infrastructure services to site partners. Both companies are reportedly working on a seamless transition plan for all stakeholders. The transaction is expected to close by the end of 2019, subject to customary closing conditions.