Dow expects to receive cash proceeds in excess of $310 million as part of the transaction. The assets are located at Dow’s sites in Plaquemine and St. Charles, Louisiana; Freeport and Seadrift, Texas; and Ft. Saskatchewan and Prentiss in Alberta, Canada.
Dow and Watco are working closely to ensure a seamless transition. The transaction is expected to close in the fourth quarter of 2020, subject to customary closing conditions.
Fourteen Dow employees and management of approximately 400 contract workers are expected to transition to Watco upon close of the transaction.
Dow continues to evaluate its ownership of non-product producing assets across its global portfolio. The Company expects this effort to generate additional opportunities from its infrastructure footprint consistent with those in today’s announcement.
Goldman Sachs acted as financial advisor to Dow, and Mayer Brown & Thompson Hine provided legal support.