DOW Dow Inc

By Dave Sebastian

Dow Inc. said it has agreed to sell rail-infrastructure assets and related equipment at six major North American sites to Watco Cos. for more than $310 million in cash proceeds.

Dow expects 14 employees and the management of about 400 contract workers to transfer to the Pittsburg, Kan.-based transportation company after the transaction's close, expected in the fourth quarter.

The company, which makes plastics and silicones, said the sale is part of its effort to focus on core businesses.

"The transaction will liberate cash from our balance sheet that we will use to pay down debt and invest in our core value-generating businesses," Chairman and Chief Executive Jim Fitterling said.

Dow said the assets are in Plaquemine and St. Charles, La.; Freeport and Seadrift, Texas; and Ft. Saskatchewan and Prentiss in Alberta, Canada.

Watco said it will partner with a group that manages infrastructure investing strategy and funds managed by Oaktree Capital Management LP to execute the deal. Watco said Oaktree has been a company investor since December 2018.

Write to Dave Sebastian at dave.sebastian@wsj.com

(END) Dow Jones Newswires

July 06, 2020 07:32 ET (11:32 GMT)

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