The Dow Chemical Company has signed a definitive agreement under which AgroFresh, its post-harvest specialty chemical business, will be acquired by Boulevard Acquisition Corp, a public investment vehicle, formed by Avenue Capital Group, for $860 million.
The transaction has been unanimously approved by the boards of directors of both companies, and is expected to close in the third quarter of 2015, subject to approval by Boulevard’s shareholders and other closing conditions, including regulatory filings and local employment law and governance obligations in Europe.
Dow had previously announced its intent to divest AgroFresh on October 2, 2014. The signing of this transaction represents yet another milestone against the company’s stated target of $7 billion to $8.5 billion in proceeds from divestitures by mid-2016. Since 2013, Dow has signed or completed transactions that are expected to exceed $ 12 billion in pre-tax proceeds.
“In line with recently announced portfolio moves, this transaction demonstrates Dow’s focus on selectively shifting our portfolio away from businesses that are no longer a strategic fit, allowing Dow to release cash and focus on advancing our strategic growth agenda and remunerating shareholders,” said Howard Ungerleider, Dow’s chief financial officer. AgroFresh is focused on the post-harvest market segment, which is not aligned to the rest of the Dow AgroSciences’ portfolio, he added.
Upon closing, AgroFresh will become a subsidiary of Boulevard, a stand-alone public company in which Dow will retain a non-consolidated minority ownership position. It will be positioned to grow both through its existing innovative processes and through future investments and acquisitions. Thomas Macphee, vice president and corporate director for Dow, who had formerly been responsible for AgroFresh in the company’s early development, has been named Chief Executive Officer of AgroFresh, pending official closure of the transaction.
AgroFresh is a global industry leader in advanced proprietary technologies for the horticultural and agronomic markets. It offers an innovative portfolio of products and services that enhance the freshness, quality and value of fresh produce.
The transaction has been unanimously approved by the boards of directors of both companies, and is expected to close in the third quarter of 2015, subject to approval by Boulevard’s shareholders and other closing conditions, including regulatory filings and local employment law and governance obligations in Europe.
Dow had previously announced its intent to divest AgroFresh on October 2, 2014. The signing of this transaction represents yet another milestone against the company’s stated target of $7 billion to $8.5 billion in proceeds from divestitures by mid-2016. Since 2013, Dow has signed or completed transactions that are expected to exceed $ 12 billion in pre-tax proceeds.
“In line with recently announced portfolio moves, this transaction demonstrates Dow’s focus on selectively shifting our portfolio away from businesses that are no longer a strategic fit, allowing Dow to release cash and focus on advancing our strategic growth agenda and remunerating shareholders,” said Howard Ungerleider, Dow’s chief financial officer. AgroFresh is focused on the post-harvest market segment, which is not aligned to the rest of the Dow AgroSciences’ portfolio, he added.
Upon closing, AgroFresh will become a subsidiary of Boulevard, a stand-alone public company in which Dow will retain a non-consolidated minority ownership position. It will be positioned to grow both through its existing innovative processes and through future investments and acquisitions. Thomas Macphee, vice president and corporate director for Dow, who had formerly been responsible for AgroFresh in the company’s early development, has been named Chief Executive Officer of AgroFresh, pending official closure of the transaction.
AgroFresh is a global industry leader in advanced proprietary technologies for the horticultural and agronomic markets. It offers an innovative portfolio of products and services that enhance the freshness, quality and value of fresh produce.