Dow announces partnership with Macquarie Asset Management to launch Diamond Infrastructure Solutions
Dow (NYSE: DOW) has announced a strategic partnership with Macquarie Asset Management to create Diamond Infrastructure Solutions, selling a 40% equity stake in select U.S. Gulf Coast infrastructure assets. The deal is expected to generate initial cash proceeds of $2.4 billion, with potential to reach $3.0 billion if Macquarie exercises its option to increase its stake to 49% within six months of closing.
The partnership encompasses non-product producing assets at five manufacturing sites in Texas and Louisiana, including power and steam production, pipelines, environmental operations, and general site infrastructure. Dow will maintain majority control to ensure operational continuity. The transaction is expected to close in the first half of 2025, subject to regulatory approvals.
Dow (NYSE: DOW) ha annunciato una partnership strategica con Macquarie Asset Management per creare Diamond Infrastructure Solutions, vendendo una partecipazione del 40% in selezionati asset infrastrutturali della Costa del Golfo degli Stati Uniti. Si prevede che l'accordo genererà proventi iniziali in contanti di 2,4 miliardi di dollari, con la possibilità di raggiungere 3,0 miliardi di dollari se Macquarie eserciterà la sua opzione di aumentare la partecipazione al 49% entro sei mesi dalla chiusura.
La partnership comprende asset non produttivi in cinque siti manifatturieri in Texas e Louisiana, inclusi la produzione di energia e vapore, oleodotti, operazioni ambientali e infrastrutture generali del sito. Dow manterrà il controllo maggioritario per garantire la continuità operativa. Si prevede che la transazione si chiuda nella prima metà del 2025, soggetta ad approvazioni normative.
Dow (NYSE: DOW) ha anunciado una asociación estratégica con Macquarie Asset Management para crear Diamond Infrastructure Solutions, vendiendo una participación del 40% en activos de infraestructura seleccionados en la Costa del Golfo de EE. UU. Se espera que el acuerdo genere ingresos iniciales en efectivo de 2.4 mil millones de dólares, con la posibilidad de alcanzar 3.0 mil millones de dólares si Macquarie ejerce su opción para aumentar su participación al 49% dentro de los seis meses posteriores al cierre.
La asociación abarca activos no productivos en cinco sitios de manufactura en Texas y Luisiana, incluidos la producción de energía y vapor, oleoductos, operaciones ambientales y la infraestructura general del sitio. Dow mantendrá el control mayoritario para asegurar la continuidad operativa. Se espera que la transacción se cierre en la primera mitad de 2025, sujeta a aprobaciones regulatorias.
다우 (NYSE: DOW)는 매쿼리 자산 관리와 전략적 파트너십을 발표하고 다이아몬드 인프라 솔루션을 만들며, 미국 걸프 코스트의 특정 인프라 자산에 대해 40%의 지분을 매각합니다. 이번 거래는 24억 달러의 초기 현금 수익을 생성할 것으로 예상되며, 매쿼리가 6개월 이내에 지분을 49%로 늘릴 옵션을 행사할 경우 30억 달러에 이를 수 있는 잠재력이 있습니다.
이번 파트너십은 텍사스와 루이지애나에 있는 5개의 제조 사이트에서 비생산 자산을 포함하며, 전력 및 증기 생산, 파이프라인, 환경 운영 및 일반 사이트 인프라를 포함합니다. 다우는 운영 연속성을 보장하기 위해 과반수의 통제를 유지할 것입니다. 거래는 2025년 상반기에 종료될 것으로 예상되며, 규제 승인에 달려 있습니다.
Dow (NYSE: DOW) a annoncé un partenariat stratégique avec Macquarie Asset Management pour créer Diamond Infrastructure Solutions, en vendant une participation de 40 % dans certains actifs d'infrastructure de la côte du Golfe des États-Unis. L'accord devrait générer des produits en espèces initiaux de 2,4 milliards de dollars, avec un potentiel d'atteindre 3,0 milliards de dollars si Macquarie exerce son option d'augmenter sa participation à 49 % dans les six mois suivant la clôture.
Le partenariat englobe des actifs non productifs sur cinq sites de fabrication au Texas et en Louisiane, y compris la production d'énergie et de vapeur, des pipelines, des opérations environnementales et l'infrastructure générale des sites. Dow maintiendra le contrôle majoritaire pour garantir la continuité opérationnelle. La transaction devrait se clos dans la première moitié de 2025, sous réserve des approbations réglementaires.
Dow (NYSE: DOW) hat eine strategische Partnerschaft mit Macquarie Asset Management angekündigt, um Diamond Infrastructure Solutions zu gründen, bei der eine 40%ige Beteiligung an ausgewählten Infrastrukturvermögen an der Golfküste der USA verkauft wird. Es wird erwartet, dass der Deal anfängliche Barerträge von 2,4 Milliarden US-Dollar generiert, mit dem Potenzial, 3,0 Milliarden US-Dollar zu erreichen, wenn Macquarie die Option wahrnimmt, ihren Anteil innerhalb von sechs Monaten nach Abschluss auf 49% zu erhöhen.
Die Partnerschaft umfasst nicht-produzierende Vermögenswerte an fünf Standorten in Texas und Louisiana, einschließlich Energie- und Dampferzeugung, Pipelines, Umweltoperationen und allgemeine Standortinfrastruktur. Dow wird die Mehrheitskontrolle aufrechterhalten, um die operative Kontinuität sicherzustellen. Die Transaktion wird voraussichtlich in der ersten Hälfte von 2025 abgeschlossen, vorbehaltlich regulatorischer Genehmigungen.
- Expected to receive $2.4 billion in initial cash proceeds, potentially increasing to $3.0 billion
- Maintains operational control while monetizing non-core infrastructure assets
- Creates new revenue opportunities through third-party customer access to infrastructure
- Strengthens financial flexibility for future value-creating investments
- Reduces full ownership of strategic infrastructure assets
- Introduces dependency on partnership success for infrastructure operations
Insights
This $2.4 billion infrastructure deal represents a significant strategic move for Dow. The transaction unlocks substantial value from non-core assets while maintaining operational control through a 51% majority stake. The potential for additional proceeds up to
The partnership creates a dedicated infrastructure platform that can drive operational efficiencies and generate new revenue streams by serving third-party customers. This asset-light approach allows Dow to monetize infrastructure assets while ensuring reliable operations for its core chemical business. The deal follows similar successful transactions in rail and marine infrastructure, demonstrating consistent execution of Dow's portfolio optimization strategy.
Diamond Infrastructure Solutions encompasses critical assets across five major Gulf Coast sites, including power generation, steam production, pipelines and environmental operations. The strategic location and connectivity to major natural gas, NGL and olefin hubs position the platform for growth. Macquarie Asset Management's expertise in managing industrial infrastructure and utilities adds significant value potential through operational improvements and third-party customer acquisition.
The structure maintains Dow's operational control while bringing in a partner with deep infrastructure management experience. This combination should optimize asset performance and create new revenue opportunities without compromising reliability or safety standards.
- A fund managed by Macquarie Asset Management to acquire an initial
40% stake in select DowU.S. Gulf Coast infrastructure assets with an option to increase its equity stake to49% within six months of closing - Dow is expected to receive initial cash proceeds of approximately
$2.4 billion $3.0 billion - Diamond Infrastructure Solutions will leverage Dow's operational excellence and Macquarie Asset Management's world-leading infrastructure expertise to generate growth opportunities by opening access to Dow's
U.S. Gulf Coast sites to third party customers - Proceeds to be deployed towards higher value-creating growth investments
This new partnership, Diamond Infrastructure Solutions ("Diamond"), will be a specialist infrastructure provider to Dow and other industrial customers at its five locations in
Dow expects to receive initial cash proceeds of approximately
"Today's announcement demonstrates Dow's ongoing commitment to value maximizing actions across our portfolio," said Jim Fitterling, chair and chief executive officer of Dow. "This transaction further strengthens our financial flexibility and enables continued cash deployment towards the most attractive opportunities that will create long-term value for our stakeholders. We are confident that Macquarie is the right industrially minded partner due to our shared values to ensure the ongoing safe and reliable operations of these assets to support Dow and industrial customers across the
Diamond is comprised of certain non-product producing assets (power and steam production, pipelines, environmental operations and general site infrastructure) located at five of Dow's manufacturing sites in the
Macquarie Asset Management is a leading global infrastructure asset manager with a focus on operational excellence. It prioritizes investments in high quality, essential assets that can be improved over time and deliver growth and reliable service to customers, as well as the health and safety of employees. Macquarie Asset Management has specific experience in managing and operating industrial parks, regulated utilities and other industry-oriented infrastructure platforms.
"As a long-term owner of essential infrastructure, we recognize the value that can be unlocked through the development of infrastructure platforms like Diamond Infrastructure Solutions," said Ben Way, Global Head of Macquarie Asset Management. "We believe that our significant infrastructure experience and capabilities, coupled with Dow's operational excellence, will deliver additional efficiencies and long-term growth."
This transaction is another step in Dow's continued actions to evaluate its ownership of non-product producing assets across its global portfolio. It builds on the previous sale of the Company's rail infrastructure assets at six North American sites in September, 2020, and the sale of its
Citi and Goldman Sachs acted as financial advisor to Dow, and Linklaters provided legal support.
About Dow
Dow (NYSE: DOW) is one of the world's leading materials science companies, serving customers in high-growth markets such as packaging, infrastructure, mobility and consumer applications. Our global breadth, asset integration and scale, focused innovation, leading business positions and commitment to sustainability enable us to achieve profitable growth and help deliver a sustainable future. We operate manufacturing sites in 31 countries and employ approximately 35,900 people. Dow delivered sales of approximately
Cautionary Statement about Forward-Looking Statements
Certain statements in this press release are "forward-looking statements" within the meaning of the federal securities laws, including Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such statements often address expected future business and financial performance, financial condition, and other matters, and often contain words or phrases such as "anticipate," "believe," "estimate," "expect," "intend," "may," "opportunity," "outlook," "plan," "project," "seek," "should," "strategy," "target," "will," "will be," "will continue," "will likely result," "would" and similar expressions, and variations or negatives of these words or phrases.
Forward-looking statements are based on current assumptions and expectations of future events that are subject to risks, uncertainties and other factors that are beyond Dow's control, which may cause actual results to differ materially from those projected, anticipated or implied in the forward-looking statements and speak only as of the date the statements were made. These factors include, but are not limited to: sales of Dow's products; Dow's expenses, future revenues and profitability; any global and regional economic impacts of a pandemic or other public health-related risks and events on Dow's business; any sanctions, export restrictions, supply chain disruptions or increased economic uncertainty related to the ongoing conflicts between
Where, in any forward-looking statement, an expectation or belief as to future results or events is expressed, such expectation or belief is based on the current plans and expectations of management and expressed in good faith and believed to have a reasonable basis, but there can be no assurance that the expectation or belief will result or be achieved or accomplished. A detailed discussion of principal risks and uncertainties which may cause actual results and events to differ materially from such forward-looking statements is included in the section titled "Risk Factors" contained in the Company's Annual Report on Form 10-K for the year ended December 31, 2023, and the Company's subsequent Quarterly Reports on Form 10-Q. These are not the only risks and uncertainties that Dow faces. There may be other risks and uncertainties that Dow is unable to identify at this time or that Dow does not currently expect to have a material impact on its business. If any of those risks or uncertainties develops into an actual event, it could have a material adverse effect on Dow's business. Dow Inc. and The Dow Chemical Company and its consolidated subsidiaries assume no obligation to update or revise publicly any forward-looking statements whether because of new information, future events, or otherwise, except as required by securities and other applicable laws.
About Macquarie Asset Management
Macquarie Asset Management is a global asset manager, integrated across public and private markets. Trusted by institutions, governments, foundations and individuals to manage approximately
Macquarie Asset Management is part of Macquarie Group, a diversified financial group providing clients with asset management, finance, banking, advisory, and risk and capital solutions across debt, equity and commodities. Founded in 1969, Macquarie Group employs over 20,600 people in 34 markets and is listed on the Australian Securities Exchange.
All figures as at 30 September 2024.
Important Notices (Macquarie Asset Management): None of the entities noted in this media release is an authorised deposit-taking institution for the purposes of the Banking Act 1959 (Commonwealth of
For further information, please contact:
Rachelle Schikorra
ryschikorra@dow.com
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SOURCE The Dow Chemical Company
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