Dow has reportedly entered into an agreement for the divestment of certain U.S. Gulf Coast terminal and marine assets and operations for a sum of $620 million to Vopak Industrial Infrastructure Americas. The deal involves storage terminal and marine operations in addition to the various assets located at Dow’s sites in Freeport, Texas, and Plaquemine and St. Charles in Louisiana.
According to Jim Fittering, the Chairman and CEO of Dow, the declaration is another demonstration of Dow’s ongoing dedication to the application of a best-owner mindset, backed by rigorous benchmarking in addition to a focus on disciplined capital allocation. He has further highlighted that the deal will allow Dow to utilize cash towards value-enhancing opportunities in the company’s core businesses in synergy with its capital allocation priorities that comprise reliable and safe operations along with the payment of additional debts.
Dow is thrilled to advance its longstanding relationship with Vopak that is already a key logistics partner at numerous Dow locations at the global level, added Fittering.
For the uninitiated, Royal Vopak is a prominent tank storage player having more than 400 years of expertise in independent infrastructure and storage services. The company is renowned for its strategy of supporting growth opportunities and caring for employees, assets, as well as the broader communities and the sites of their residence.
For the transaction, Goldman Sachs provided financial support to Dow with Mayer Brown acting as the company’s legal advisor. Dow continues the evaluation of its non-revenue-generating assets ownership across its worldwide portfolio declared in July 2020, when the company announced its entry into an agreement for the sale of its rail infrastructure and assets situated at six different sites in North America.
The deal is likely to be closed during the fourth quarter of 2020, subject to closing conditions and customary regulatory approvals in the European Union and the United States, state sources. The company has further stated that it will consistently carry on its normal operations through the entire divestment process.