What Might Be Tagged At Dow’s Yardsale?
Mar24

What Might Be Tagged At Dow’s Yardsale?

As you have may have heard, Dow Chemical plans to sell more businesses. Back in December, the company said it would get rid of its epoxy resins and chlorine-related business, which would make the bulk of $3.0 to $4.0 billion worth of divestitures. Mind you, these numbers here are a little funky. They refer to the pre-tax proceeds to Dow from transactions that aren't necessarily even being negotiated yet. However, the company tends to get strong valuations when it sells businesses, so I would expect that the proceeds from deals would be within the range and even towards the top of it. Last week, at an investor event in Saudi Arabia, the company announced it would put an additional $1.5 to $2.0 billion in businesses up for sale. CEO Andrew N. Liveris wouldn't say what the businesses are, but he would certainly characterize them. They would be nice businesses, likely coming out of its Performance and Functional Materials units, and perhaps reasonably profitable. But they would be more meaningful to potential buyers than they currently are to Dow. They would be, Liveris promised,  "Lots of small, little businesses that you never even track, that you never follow, and that you never even knew we had." He was addressing analysts, thus casting a wide net. They are only acquainted with the solid form of ethylene known as polyethylene and Dow AgroSciences. The Chemical Notebook takes Liveris' remarks as a challenge. What are the most obscure Dow businesses? Two that jumped out at me are are Dow Plastics Plastics Additives And Dow Oil & Gas. Dow put the plastics additives unit up for sale last year and then withdrew it from the market. Oil and Gas is tiny, about $270 million in annual sales. It is a market facing unit that sells chemicals for oil and gas exploration and extraction. This is a very marketable business, with companies such as Solvay and Ecolab plunging further in this area. My only reservation about Dow selling this business is that the chemistry on offer in oil and gas overlaps with other Dow businesses. Additionally, I combed through Dow's Product Safety Assessment Finder, which by the way, is a great source of information for many chemicals. I asked question "what are the real oddball businesses?" Here are few (Don't take this as a list of possible sales, though. Some, as you will see, are likely keepers.): Silicones and Feel Modifiers: These sound dirty. They're not. They are used in leather finishing. They also sound like something Dow Corning would sell. With a tradename like ROSILK, I'll guess these came from Rohm and Haas. ADSORBIA...

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Dow On TV
May20

Dow On TV

Olin isn't the only company that makes chlorine and ammunition. So does Dow. Dow paintballs OK, the polyethylene glycol filling in paint balls aren't exactly Winchester rounds. Separately, CBS News did a piece on Dow's solar shingles: CBS Report on Dow Shingles Autoworkers paid taxes that helped subsidize my University of Michigan education. It is nice to see some of them getting back to...

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