Dow Chemical Raises Divestiture Target, To Sell Angus For $1.22 Bln.

(RTTNews) - Dow Chemical Co. (DOW) on Wednesday increased its asset sale target to up to $8.5 billion, as the company aims sell more of its non-strategic assets to focus on its core businesses. Separately, the chemical maker announced the deal to sell Angus Chemical to Golden Gate Capital for $1.215 billion.

Dow has increased its divestiture target range to $7 billion to $8.5 billion, which it expects to complete by mid-2016. Earlier, the company had planned to divest assets of $4.5 billion to $6 billion by year-end 2015. Dow Chemical, which has been selling off assets and streamlining its operations, has divested $2.5 billion worth of assets since 2013.

"As part of our ongoing process to drive value through a best owner mindset and using economic value add as our lens, we are consistently looking across our portfolio to identify additional sources of long-term value creation and maximize the returns on the capital we invest," CEO said Andrew Liveris.

Separately, Dow Chemical agreed to sell its Angus Chemical Company to Golden Gate Capital for $1.215 billion. The transaction is expected to close during the first quarter of 2015, subject to customary conditions.

Last month, Dow Chemical had announced that it was looking to divest Angus Chemical, Sodium Borohydride and AgroFresh as part of its divestiture plan.

"With today's announcement, Dow continues to demonstrate its rigorous focus on selectively shifting our portfolio away from assets that are no longer a strategic fit and optimizing their value," said Liveris.

Divestiture of Angus includes the business headquarters and R&D facility in Buffalo Grove, Illinois, manufacturing facilities located in Sterlington, Louisana, and Ibbenbueren, Germany, a packaging facility in Niagara Falls, New York.

Midland, Michigan-based company's Dow Chemical also announced its plans to reduce its equity position in all of its Kuwait joint ventures.

Earlier today, Dow boosted its dividend by 14 percent and also approved an additional $5 billion for share buybacks.

DOW is currently trading at $49.90, up $0.38 or 0.77%, on the NYSE.