Dow announced the completion of its previously announced sale of the company's flexible packaging laminating adhesives business, within Dow's Packaging & Specialty Plastics segment, for $150 million to Arkema.
The sale, announced May 2, 2024, includes five manufacturing sites in Italy, the United States, and Mexico. The business includes Solvent-Based and Solventless Laminating Adhesives and Heat Seal Coating product portfolios.
Proceeds from the transaction will support Dow's capital allocation priorities, including accelerating our growth strategies and delivering long-term shareholder value. The completion of this sale, along with the acquisition earlier this year of Circulus, a mechanical recycler, exemplifies Dow's commitment to aligning the company's portfolio with its growth strategy and circularity platforms.
"We are pleased to announce the successful completion of this divestiture, a strategic move that aligns with Dow's long-term vision. This transaction not only strengthens our core business but also positions us for future growth and innovation," said Karen S. Carter, president of Packaging & Specialty Plastics at Dow. "By focusing on our key strengths, we can enhance our ability to deliver value to our customers and stakeholders."
Dow retains its water-based laminating adhesives, acrylic adhesives, and adhesive solutions businesses, which remain core to its growth and sustainability strategies.
