Chemicals and materials firm Dow has entered into an agreement to sell marine and storage operations and assets at its Plaquemine and St. Charles facilities in Louisiana and its Freeport, TX site.
The company announced the $620 million deal with Vopak Industrial Infrastructure Americas, a joint venture of Royal Vopak and BlackRock’s Global Energy & Power Infrastructure Fund, on Monday.
“Today’s announcement is another demonstration of our ongoing commitment to applying a best-owner mindset, supported by rigorous benchmarking and a focus on disciplined capital allocation,” Dow CEO and Chairman Jim Fitterling said in a company release. “The transaction will enable Dow to deploy cash towards value enhancing opportunities in our core businesses consistent with our capital allocation priorities including ensuring safe and reliable operation and paying down additional debt. Dow is also pleased to further our longstanding relationship with Vopak who is already a key logistics partner at several Dow locations globally.”
Royal Vopak is a global tank storage company that provides storage and infrastructure services. In addition to the sale of the Gulf Coast assets, Dow also entered into long-term service agreements with Vopak Industrial Infrastructure Americas to for reliable and cost-advantaged services for Dow businesses that will continue to operate at the Plaquemine, St. Charles, and Freeport facilities.
Dow said it expects the transaction to close in the fourth quarter of 2020 pending the completion of regulatory approvals and other customary closing conditions.