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Dow Chemical to get USD1.22bn from Golden Gate for Angus unit
Thursday 13 November 2014

13 November 2014 - US chemicals giant The Dow Chemical Company (NYSE:DOW) has agreed to sell nitroalkane-based chemicals maker Angus Chemical Company to domestic private equity group Golden Gate Capital LP for a total consideration of USD1.22bn (EUR976.4m), the parties said in separate statements.

The transaction is scheduled for completion in the first quarter of next year and is subject to regulatory approvals.

Dow first announced intentions to shed its Illinois-based unit in October as part of a plan to raise between USD4.5bn and USD6bn from the divestment of non-core assets by the end of 2015. So far, the company has managed to generate USD2.5bn in proceeds, according to the statement.

The sale of Angus includes the company headquarters and R&D facility in Buffalo Grove, Illinois, as well as the manufacturing facilities located in Sterlington, Louisiana, and Ibbenbueren, Germany. In addition, Golden Gate will take over a packaging facility in the state of New York, associated business, inventory, customer contracts, process technology, business know-how, related intellectual property and a total of 290 employees.

Angus manufactures and distributes nitroalkanes and their derivatives, which act as additives and intermediates with a wide range of applications. They are most frequently used to enhance product performance in industries like paints and coatings, life sciences and biopharma, pharmaceuticals, personal care, water treatment and oil and gas.

Golden Gate said that financing for the deal was coming from JP Morgan Securities LLC, Deutsche Bank Securities Inc and Morgan Stanley (NYSE:MS), with JP Morgan Securities also acting as financial advisor to the buyer.
Date Published: 13/11/2014
Target: Angus Chemical Company
Country: USA
Deal Size: 1.2bn (USD)
Sector: Chemicals
Type: Divestment, LBO
Financing: Debt
Status: Agreed
Vendor: Dow Chemical Company
Buyer: Golden Gate Capital LP
Buyer Advisor: JP Morgan Securities LLC