Dow has finalized the sale of its flexible packaging laminating adhesives business. The business is part of Dow’s packaging and specialty plastics segment.
The sale is to Arkema, a global leader in specialty materials.
The $150 million transaction was initially announced on May 2, 2024. It includes five manufacturing sites across Italy, the United States, and Mexico.
Details of the Divested Business
The divested business comprises solvent-based and solventless laminating adhesives, as well as heat seal coating product portfolios. The sale will be directed towards Dow’s capital allocation priorities, supporting growth strategies and enhancing long-term shareholder value.
Commitment to Growth and Circular Economy
This divestiture, along with Dow’s recent acquisition of Circulus, a mechanical recycling company, reflects the company’s commitment to aligning its portfolio with growth ambitions.
It also supports Dow’s focus on circular economy initiatives.
Statement from Dow’s President of Packaging and Specialty Plastics
“We are proud to complete this strategic divestiture. This decision aligns with Dow’s long-term vision for growth and innovation,” said Karen S. Carter, President of Packaging and Specialty Plastics at Dow.
Carter added, “This move strengthens our core business. It enhances our ability to deliver value to customers and stakeholders by focusing on our key areas of expertise.”
Retention of Key Adhesive Solutions
Despite the sale, Dow finalized the sale of its water-based laminating adhesives, acrylic adhesives, and other adhesive solutions businesses.
These businesses are integral to its growth and sustainability objectives.
Strategic Focus on Innovation and Sustainability
As reported by prnewswire.com, the transaction underscores Dow’s strategic focus on optimizing its portfolio.
It aims to drive innovation, meet customer demands, and advance sustainability goals in the packaging and specialty plastics sector.
