Dow announced today the completion of its previously announced sale of the Company's flexible packaging laminating adhesives business, within Dow's Packaging & Specialty Plastics segment, for $150 million to Arkema, a specialty materials leader.

The sale, announced in May, includes five manufacturing sites in Italy, the United States, and Mexico. The business includes Solvent-Based and Solventless Laminating Adhesives and Heat Seal Coating product portfolios.

Proceeds from the transaction will support Dow's capital allocation priorities, including accelerating its growth strategies and delivering long-term shareholder value. The completion of this sale, along with the acquisition earlier this year of Circulus, a mechanical recycler, exemplifies Dow's commitment to aligning the company's portfolio with its growth strategy and circularity platforms.

Packaging Strategies recently reported on Capstone Partners’ November 2024 Packaging Industry Update, which noted that packaging firms have been offloading segments that do not align with their portfolio optimization strategies. Dow’s sale to Arkema is a textbook example. Packaging Strategies’ reporting on the Capstone Partners analysis can be found here.

"We are pleased to announce the successful completion of this divestiture, a strategic move that aligns with Dow's long-term vision. This transaction not only strengthens our core business but also positions us for future growth and innovation," said Karen S. Carter, president of Packaging & Specialty Plastics at Dow. "By focusing on our key strengths, we can enhance our ability to deliver value to our customers and stakeholders."

Dow retains its water-based laminating adhesives, acrylic adhesives, and adhesive solutions businesses, which remain core to its growth and sustainability strategies.