1 June 2016
DETAILS
Becomes 100 percent owner
of Dow Corning’s silicones business,
at post-synergy transaction multiple
of less than 6x EBITDA
- Highly synergistic transaction unlocks
significant value for Dow shareholders
– expected to be accretive to operating EPS,
cash flow from operations and
free cash flow in the first full year
after transaction close - Dow targets a minimum of $400 million
in annual cost and growth synergies
from the restructured ownership;
anticipates securing more than $1 billion in
additional annual EBITDA at full run-rate synergies - Strategic realignment provides
powerful new set of material science capabilities,
enabling Dow to go narrower and deeper
into high-growth, high value market sectors
such as building and construction, consumer care,
transportation, packaging, electronics, and more
Business Structure and Governance
Dow Corning will operate as
a wholly owned subsidiary of Dow,
and will be headquartered with Dow in Midland, Michigan.
As previously announced,
Dow Vice Chairman and Chief Financial Officer
Howard Ungerleider will serve as chairman of Dow Corning
in addition to his current responsibilities.
Dow Vice President Mauro Gregorio,
who leads the Dow Corning integration team for Dow,
will serve as
chief executive officer of Dow Corning.
a 27-year Dow Corning veteran,
has been named
business president of the silicones business.
Next Steps
Dow’s immediate focus is on seamlessly integrating
Dow Corning into its existing operations
and quickly capturing full growth and cost synergies.
Already, leadership from both companies
have worked together to
define the organizational design
for rapid post-close implementation.
Dow expects the transaction to be
accretive to operating earnings per share (EPS),
cash flow from operations and
free cash flow in the first full year after transaction close.
For editorial information:
Rachelle Schikorra
The Dow Chemical Company
+1 989 638 4090
ryschikorra@dow.com
WWW.CHEMWINFO.COM BY KHUN PHICHAI
