[an error occurred while processing this directive]
Skip to Main Content

Latest News

March 8, 2010
Volume 88, Number 10
p. 11
Article appeared online March 5, 2010

Dow To Exit Styrenics

Sale of Styron division to Bain Capital for $1.6 billion further focuses portfolio

Alex Tullo

  • Print this article
  • Email the editor

Text Size A A

Dow Chemical has agreed to sell its Styron division to the private equity firm Bain Capital for $1.6 billion.

Dow formed Styron last summer as a means of carving out polymer businesses that no longer fit its specialty chemical strategy. Styron generated $3.5 billion in revenues last year.

The business includes styrene derivatives such as acrylonitrile-butadiene-styrene and expandable polystyrene. It also houses Dow’s polycarbonate, latex, and synthetic rubber operations, as well as production of some specialty polymers. Dow’s 50% stake in Americas Styrenics, a polystyrene joint venture with Chevron Phillips Chemical, is included as well.

“We are committed to further focusing our portfolio by shedding nonstrategic assets that can no longer compete for growth resources inside the company,” says Dow CEO Andrew N. Liveris. Dow has sold a number of businesses since its acquisition of Rohm and Haas last April, including Rohm and Haas’s powder coatings and Morton Salt units as well as its own calcium chloride and acrylic monomers and polymers businesses. Additionally, Dow is in talks to form a joint venture for its polyethylene businesses.

This isn’t Bain’s first foray into chemicals. Earlier it acquired Rhodia’s phosphate business and took it public, purchased coatings maker SigmaKalon and sold it to PPG Industries, and took over the German chemical distributor Brenntag before selling it to another private equity firm.

Paul Mann, a chemical stock analyst with Morgan Stanley, says the price Bain is paying for Styron exceeds his expectation of up to $1.2 billion.

Chemical & Engineering News
ISSN 0009-2347
Copyright © 2011 American Chemical Society
  • Print this article
  • Email the editor

Services & Tools

ACS Resources

ACS is the leading employment source for recruiting scientific professionals. ACS Careers and C&EN Classifieds provide employers direct access to scientific talent both in print and online. Jobseekers | Employers

» Join ACS

Join more than 161,000 professionals in the chemical sciences world-wide, as a member of the American Chemical Society.
» Join Now!