Dow Chemical agreed to sell Angus Chemical to private equity investment firm Golden Gate Capital for $1.2 billion.
Subject to approvals, the transaction is expected to close in the first quarter of 2015.
Angus manufactures and distributes nitroalkanes and their derivatives, which are used as additives and intermediates for products in industries such as metalworking, oil and gas, water treatment and paints and coatings. Examples of its products include a variety of primary amino alcohols and corrosion inhibitors marketed under the Corrguard brand and AEPD-85 primary amino alcohols designed for use in water-dilutable metalworking fluids.
The Primene specialty amines, which can be used in corrosion inhibitors, are not part of the transaction, and will remain with Dow.
Dow previously announced its intent to sell the Angus business on Oct. 2. The divestiture includes Angus business headquarters and research and development facility in Buffalo Grove, Ill.; manufacturing facilities located in Sterlington, La.; and Ibbenbueren, Germany; a packaging facility in Niagara Falls, N.Y.; as well as the associated business, inventory, customer contracts, process technology, business know-how and certain intellectual property.
Under terms of the purchase agreement, Angus will to continue to honor all customer, licensing and supplier contracts and related agreements. Members of Angus senior management team are also expected to transition with the business following the close of the transaction.
Rajeev Amera, managing director for San Francisco-based Golden Gate Capital, said in a news release the private equity investment firm was excited by the growth potential of the Angus Chemical business. According to its web site, Golden Gate is actively seeking investments in an array of industrial sectors, including chemicals, industrial minerals, energy services, building products, distribution, general manufacturing, automotive and packaging.
A Dow spokesperson said the sale of Angus Chemical is not expected to impact the Dow Microbial Control business, which provides biocide and antimicrobial technologies.
All Dow Microbial Control customers are served from a world class supply network, so products that are supplied today will continue to be supplied in the future to the same high standards, a Dow spokesperson told Lube Report. Dow Microbial Controls manufacturing approach is to ensure it has a global active ingredient network, with local formulation and warehousing, to ensure a reliable structure with local service.
Angus Chemical employs 286 globally, according to the Dow spokesperson.
Dow acquired Angus Chemical in 2000.