Dow Chemical Elects To Exercise Option Related To DuPont Dow Elastomers Joint Venture
Wilmington, Del. and Midland, Mich. - DuPont and The Dow Chemical Company (Dow) today announced that Dow has elected to exercise its option to acquire certain assets relating to ethylene and chlorinated elastomers, including assets of the Engage®, Nordel® and Tyrin® businesses, from DuPont Dow Elastomers LLC (DDE), a 50/50 joint venture between DuPont and Dow, through an equity redemption transaction involving Dow's equity interest in DDE. As a result of this option exercise, DuPont will purchase Dow's remaining equity interest in DDE for $87 million immediately after the asset transfer has been completed.
DuPont had previously announced on April 8, 2004, that Dow and DuPont had executed several agreements relating to the future management of DDE. As part of those agreements, Dow was granted the option to acquire certain assets relating to ethylene and chlorinated elastomers.
These transactions are subject to customary conditions, including applicable regulatory approvals. DuPont and Dow expect to close these transactions on June 30, 2005. After the transaction, DDE will change its name and become a wholly owned subsidiary of DuPont that will include the Neoprene, Hypalon®, Kalrez®, and Viton® businesses.
DuPont Dow Elastomers LLC, a global supplier of specialty elastomers with headquarters in Wilmington, Del., is a joint venture between DuPont and Dow, with approximately $1.2 billion in sales. The company is a leader in chloroelastomers, ethylene elastomers and fluorinated elastomers, serving the automotive, chemical, construction, general rubber, plastics and wire and cable industries.
Dow is a leader in science and technology, providing innovative chemical, plastic and agricultural products and services to many essential consumer markets. With annual sales of $33 billion, Dow serves customers in more than 180 countries and a wide range of markets that are vital to human progress, including food, transportation, health and medicine, personal and home care, and building and construction, among others. Committed to the principles of sustainable development, Dow and its approximately 46,000 employees seek to balance economic, environmental and social responsibilities. References to "Dow" or the "Company" mean The Dow Chemical Company and its consolidated subsidiaries unless otherwise expressly noted.
DuPont is a science company. Founded in 1802, DuPont puts science to work by creating sustainable solutions essential to a better, safer, healthier life for people everywhere. Operating in more than 70 countries, DuPont offers a wide range of innovative products and services for markets including agriculture, nutrition, electronics, communications, safety and protection, home and construction, transportation and apparel.
Source: DuPont