Dow Selling Plastics Unit to PE Firm Bain Capital

Midland, MI, March 2, 2010--Dow Chemical Co. said it would sell its Styron  plastics unit to private equity firm Bain Capital Partners for $1.63 billion.

The sale of the unit, which makes latex for carpet, rubber and related plastics, would help Dow strengthen its balance sheet following after the buyout of Rohm and Haas last year.

Dow will have the option to keep a 15 percent stake in Styron. The deal also includes $400 million in supply agreements, where Dow will feed Styron the materials needed to produce its plastics.

The deal is expected to close by August. Styron is expected to have $3.5 billion in annual revenue.

"We are committed to further focusing our portfolio by shedding non-strategic assets that can no longer compete for growth resources inside the Company." said Dow CEO Andrew N. Liveris.