Dow Inc. announced on December 9, 2024, that it has entered into a definitive agreement to sell a 40% equity stake in select U.S. Gulf Coast infrastructure assets to a fund managed by Macquarie Asset Management. This strategic partnership, named Diamond Infrastructure Solutions, is expected to generate initial cash proceeds of approximately $2.4 billion for Dow.
Macquarie Asset Management will have the option to increase its equity share to 49% within six months of closing, which could raise the total cash proceeds for Dow to approximately $3.0 billion. Diamond Infrastructure Solutions will operate as a specialist provider of infrastructure services to Dow and other industrial customers at five of Dow’s manufacturing sites in the U.S. Gulf Coast, including Freeport, Texas City, Seadrift in Texas, and Plaquemine and St. Charles in Louisiana.
This transaction is consistent with Dow's strategy to unlock value from its non-product producing assets and bolster its financial flexibility. The partnership leverages Macquarie's infrastructure experience and Dow's operational excellence to drive efficiencies and potential new customer acquisition, while allowing Dow to maintain strategic control over these critical assets.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.