Macquarie Asset Management announces partnership with Dow to launch Diamond Infrastructure Solutions
Macquarie Asset Management has entered into an agreement to acquire a 40% equity stake in select Dow U.S. Gulf Coast infrastructure assets, forming Diamond Infrastructure Solutions. The partnership will manage non-product producing assets at five Dow manufacturing sites in Texas and Louisiana, including power and steam production, pipelines, and environmental operations.
Dow expects to receive initial cash proceeds of approximately $2.4 billion for the 40% stake, with potential proceeds up to $3.0 billion if Macquarie exercises its option to increase its stake to 49% within six months of closing. The transaction is expected to close in the first half of 2025, subject to regulatory approvals.
Macquarie Asset Management ha stipulato un accordo per acquisire una partecipazione azionaria del 40% in alcuni beni infrastrutturali di Dow nella costa del Golfo degli Stati Uniti, formando Diamond Infrastructure Solutions. La partnership gestirà beni non produttivi in cinque stabilimenti di produzione di Dow in Texas e Louisiana, comprese la produzione di energia e vapore, oleodotti e operazioni ambientali.
Dow prevede di ricevere proventi iniziali in contante di circa 2,4 miliardi di dollari per la partecipazione del 40%, con proventi potenziali fino a 3,0 miliardi di dollari se Macquarie esercita l'opzione di aumentare la propria partecipazione al 49% entro sei mesi dalla chiusura. La transazione dovrebbe chiudersi nella prima metà del 2025, soggetta alle approvazioni normative.
Macquarie Asset Management ha firmado un acuerdo para adquirir una participación accionaria del 40% en ciertos activos de infraestructura de Dow en la costa del Golfo de EE. UU., formando Diamond Infrastructure Solutions. La asociación gestionará activos que no producen productos en cinco sitios de fabricación de Dow en Texas y Louisiana, incluyendo la producción de energía y vapor, oleoductos y operaciones ambientales.
Dow espera recibir ingresos iniciales en efectivo de aproximadamente 2.4 mil millones de dólares por la participación del 40%, con ingresos potenciales de hasta 3.0 mil millones de dólares si Macquarie ejerce su opción de aumentar su participación al 49% dentro de los seis meses posteriores al cierre. Se espera que la transacción se cierre en la primera mitad de 2025, sujeta a aprobaciones regulatorias.
맥쿼리 자산 관리가 특정 다우의 미국 걸프 코스트 인프라 자산의 40% 지분을 인수하는 계약을 체결하여 다이아몬드 인프라 솔루션을 형성했습니다. 이 파트너십은 텍사스 및 루이지애나에 있는 다우의 다섯 개 제조 사이트에서 비생산 자산을 관리하며, 여기에는 에너지 및 스팀 생산, 파이프라인 및 환경 운영이 포함됩니다.
다우는 40% 지분에 대해 약 24억 달러의 초기 현금 수익을 기대하고 있으며, 맥쿼리가 6개월 이내에 지분을 49%로 늘릴 옵션을 행사할 경우 최대 30억 달러의 수익을 올릴 수 있습니다. 이 거래는 2025년 상반기 내에 종료될 것으로 예상되며, 규제 승인을 조건으로 합니다.
Macquarie Asset Management a conclu un accord pour acquérir une participation de 40 % dans certains actifs d'infrastructure de Dow sur la côte du Golfe des États-Unis, formant Diamond Infrastructure Solutions. Le partenariat gérera des actifs non productifs sur cinq sites de fabrication de Dow au Texas et en Louisiane, y compris la production d'énergie et de vapeur, des pipelines et des opérations environnementales.
Dow s'attend à recevoir des produits en espèces initiaux d'environ 2,4 milliards de dollars pour la participation de 40 %, avec des produits potentiels pouvant atteindre 3,0 milliards de dollars si Macquarie exerce son option d'augmenter sa participation à 49 % dans les six mois suivant la clôture. La transaction devrait être finalisée dans la première moitié de 2025, sous réserve des approbations réglementaires.
Macquarie Asset Management hat eine Vereinbarung über den Erwerb eines 40% Anteils an ausgewählten Dow Infrastrukturassets an der US-Golfküste getroffen und gegründet Diamond Infrastructure Solutions. Die Partnerschaft wird nicht produktive Vermögenswerte an fünf Produktionsstandorten von Dow in Texas und Louisiana verwalten, einschließlich der Energie- und Dampfproduktion, Pipelines und Umweltoperationen.
Dow erwartet, anfängliche Barmittel von etwa 2,4 Milliarden Dollar für den 40%-Anteil zu erhalten, mit potenziellen Einnahmen von bis zu 3,0 Milliarden Dollar, falls Macquarie die Option wahrnimmt, den Anteil innerhalb von sechs Monaten nach dem Closing auf 49% zu erhöhen. Der Abschluss der Transaktion wird in der ersten Hälfte von 2025 erwartet, vorbehaltlich der behördlichen Genehmigungen.
- Dow to receive substantial cash proceeds of $2.4 billion, potentially increasing to $3.0 billion
- Strategic partnership enables operational efficiencies and new customer acquisition opportunities
- Transaction strengthens Dow's financial flexibility for future value-creating opportunities
- Dow reduces ownership control over critical infrastructure assets
Insights
This strategic partnership represents a significant value-unlocking initiative for Dow, with immediate financial implications. The
The transaction effectively creates a dedicated infrastructure platform that can drive additional revenue streams by opening these assets to third-party customers. This model could potentially transform what were previously cost centers into profit-generating units. The focus on the U.S. Gulf Coast region, a important hub for petrochemical operations, positions Diamond Infrastructure Solutions to capitalize on growing industrial demand in the area.
The formation of Diamond Infrastructure Solutions represents an innovative approach to industrial infrastructure management. By combining Dow's operational expertise with Macquarie's infrastructure management capabilities, the partnership creates a specialized platform that can optimize asset utilization and attract third-party customers. The assets involved - including power generation, steam production, pipelines and environmental operations - are essential infrastructure components that serve as the backbone of industrial operations.
Macquarie's track record of
-
Diamond Infrastructure Solutions will leverage Dow’s operational excellence and Macquarie Asset Management’s infrastructure and energy expertise to generate growth opportunities by opening access to Dow’s
U.S. Gulf Coast sites to third party customers -
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
$US2.4 billion based on the initial transaction, with potential to receive up to approximately$US3.0 billion in total
This new partnership, Diamond Infrastructure Solutions (“Diamond”), will be a specialist infrastructure provider to Dow and other industrial customers at its five locations in
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
“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.”
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. Over the last 21 years, Macquarie Asset Management has invested or committed more than
“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
Dow expects to receive initial cash proceeds of approximately
BMO Capital Markets acted as exclusive financial advisor to Macquarie Asset Management and Sidley Austin LLP acted as legal counsel.
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.
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.
1 Total count of distinct infrastructure businesses (realized and unrealized) owned by private infrastructure funds investing in the
View source version on businesswire.com: https://www.businesswire.com/news/home/20241209180993/en/
Media Contact:
Lee Lubarsky
Macquarie Asset Management
lee.lubarsky@Macquarie.com
+1-347-302-3000
Source: Macquarie Asset Management
FAQ
What is the value of Macquarie's initial stake acquisition in Dow's infrastructure assets?
When is the Dow-Macquarie infrastructure deal expected to close?
Which Dow facilities are included in the Diamond Infrastructure Solutions partnership?
What is the maximum stake Macquarie can acquire in Dow's infrastructure assets?
