Dow strengthens strategic focus through sale of flexible packaging laminating adhesives business to Arkema

Dow, a leading materials science company, has announced a strategic move to sell its flexible packaging laminating adhesives business to Arkema, a specialty materials leader. This proposed transaction aligns with Dow’s best-owner mindset and will support the company’s Decarbonize & Grow and Transform the Waste strategies.

The sale of the flexible packaging laminating adhesives business will enable Dow to focus on core, high-value downstream businesses, driving long-term shareholder value. The proceeds from this transaction, valued at $150 million, will support Dow’s capital allocation priorities, including accelerating growth strategies to capture over $3 billion in annual earnings growth by 2030.

Jim Fitterling, Dow’s chair and CEO, emphasized the importance of proactively managing the company’s asset portfolio to invest in businesses with competitive positions in attractive markets. The transaction includes five manufacturing sites in Italy, the United States, and Mexico, transferring Solvent-Based Laminating Adhesives, Solventless Laminating Adhesives, and Heat Seal Coatings product families to Arkema.

The transaction, expected to close by the end of 2024 pending regulatory approval, highlights Dow’s commitment to sustainability and market growth strategies. Dow will retain its water-based laminating adhesives and acrylic adhesives businesses, ensuring a seamless transition for all stakeholders.

This strategic move underscores Dow’s dedication to driving profitable growth and delivering a sustainable future. With a global presence and a focus on innovation and sustainability, Dow continues to position itself as a leader in the materials science industry.