Dow, a materials science company recently agreed to sell its flexible packaging laminating adhesives business to Arkema, a specialty materials company, for $150 million.
Under the agreement, Dow will transfer five manufacturing sites and the Solvent-Based Laminating Adhesives, Solventless Laminating Adhesives, and Heat Seal Coatings product families to Arkema.
The facilities are located in the United States, Italy and Mexico
Dow will retain its water-based laminating adhesives and acrylic adhesives businesses within its Packaging and Specialty Plastics segment and its adhesive solutions within Dow Consumer Solutions and MobilityScience.
“In line with Dow’s best-owner mindset, we are focused on proactively managing our asset portfolio to invest in businesses with competitive positions in attractive markets,” Jim Fitterling, Dow chairman and CEO, said. “Proceeds will help us advance our long-term Decarbonize & Grow and Transform the Waste strategies designed to capture more than $3 billion in annual earnings growth by 2030.”
The transaction is subject to regulatory approval and is expected to close by the end of the year.
Dow operates manufacturing sites in 31 countries and employs approximately 35,900 people. In 2023, it had sales totaling approximately $45 billion. It serves customers in high-growth markets such as consumer applications, infrastructure, mobility and packaging.