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Print Edition StoriesTuesday, March 2, 2010
Bain Capital pays $1.6 billion for Dow division
By Mass High Tech staff
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Boston-based private equity firm Bain Capital Partners has agreed to buy the Styron Division of The Dow Chemical Co. for $1.6 billion. The sale is expected to close in August.
The agreement, called a “long-term partnership with Dow” according to Bain Capital managing director Steve Zide, will make Styron a stand-alone private company in the chemicals and plastics industry.
A press release from the two companies today noted Dow’s option to receive up to 15 percent of Styron equity as part of the agreement, as well as long-term supply, service and purchase deals for Dow and Styron.
For its part, the Midland, Mich.-based chemical firm said the company has a goal of “focusing our portfolio by shedding non-strategic assets that can no longer compete for growth resources inside the company,” Dow chairman and CEO Andrew Liveris said in the news release.
Styron’s business includes its two flagship plastics products of polystyrene and latex. Polystyrene material is used in packaging, heat insulation, impact sound insulation and drainage. Latex is used in flooring and paper/paperboard applications.
Bain Capital has about $65 billion in assets under management. Among the company’s most recent acquisitions and business ventures, it inked a deal in January to invest $12 million in EDGAR Online, a financial information distribution company. The firm, along with other investors, also took a stake in a $1.1 billion buyout of Nashua, N.H.-based e-learning and training company SkillSoft PLC.
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