Dow Chemical Co. has agreed to sell its specialty chemical
business AgroFresh to an investment arm of Avenue Capital Group for
$860 million, the chemical giant's latest move to refocus its
business.
Dow had announced plans to divest the business last October.
AgroFresh provides chemicals that keep produce fresh. Its
flagship product is SmartFreshSM Quality System, a freshness
protection technology that helps maintain fruits' firmness, texture
and appearance.
Dow said AgroFresh is focused on the post-harvest market, which
doesn't align with the rest of its portfolio.
Dow will keep a minority stake in the business, initially
holding about 40% of the shares. Shareholders of Boulevard
Acquisition Corp., the public investment vehicle of Avenue Capital,
will initially hold the remaining 60% stake.
The deal is expected to close in the third quarter of the
year.
Dow is in the midst of a broad shift to focus on higher-margin
products rather than the increasingly commoditized business of
turning oil and natural gas into basic chemicals.
In March, Dow said it would spin off a significant portion of
its chlorine business to smaller chemicals maker Olin Corp. in a
cash-and-stock deal valued at $5 billion.
Write to Chelsey Dulaney at Chelsey.Dulaney@wsj.com
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