Dow announced on June 2, it has entered into a definitive agreement to sell its 50% ownership interest in DowAksa Advanced Composites Holdings BV (DowAksa) to its joint venture partner, Aksa Akrilik Kimya Sanayii A.S., a subsidiary of Akkök Holding. The transaction, valued at $125 million in proceeds for Dow, is aligned with the company's focus on its core, high-value downstream businesses.

The joint venture, established in 2012, has focused on the production and commercialization of carbon fiber and derivatives. Dow’s decision to exit DowAksa reflects its "best-owner mindset" strategy, which prioritizes streamlining its portfolio and concentrating on areas where it can generate the most value. The proceeds from this sale are anticipated to bolster Dow's balanced capital allocation approach, enabling further investments in its core operations, shareholder returns, and debt reduction. After accounting for debt, the sale reflects an enterprise value of approximately 10 times the estimated 2025 operating EBITDA for DowAksa.

This divestiture marks a significant step in Dow’s ongoing efforts to optimize its asset base and strengthen its financial position. By shedding its interest in DowAksa, the company aims to reallocate resources to its more central and profitable segments, including packaging, infrastructure, mobility, and consumer applications. This strategic realignment is crucial for Dow as it navigates a dynamic global market, seeking to maintain its leadership in materials science and drive sustainable growth.

Dow's financial advisor for this transaction was BNP Paribas, underscoring the structured and strategic nature of the divestment process. The sale is subject to customary regulatory approvals and other closing conditions, with an expected completion in the third quarter of 2025. This timeline allows for a smooth transition and ensures all necessary legal and financial requirements are met before the finalization of the agreement.

Dow, a global leader in materials science, continues to serve a wide array of high-growth markets. With manufacturing sites in 30 countries and a workforce of approximately 36,000 employees, the company reported sales of approximately $43 billion in 2024. Its commitment to sustainability, coupled with its global reach, integrated assets, and focused innovation, positions Dow to continue delivering profitable growth and contributing to a more sustainable future. The sale of its DowAksa stake is a testament to Dow's proactive management of its portfolio, ensuring that its strategic direction remains agile and responsive to market opportunities while reinforcing its core strengths. This move is expected to enhance Dow's financial flexibility and strategic focus, benefiting its stakeholders and reinforcing its long-term vision.