The Dow Chemical Company has signed an agreement with Sealed Air Corporation to purchase certain assets of Dow's ETHAFOAM™ performance foam business. Dow's ETHAFOAM™performance polyethylene foam is used in a wide variety of applications, such as electronics, military sports, leisure and transportation.
The deal is subject to certain regulatory approvals and is estimated to be complete in Q4-07. The financial terms of the agreement have not been disclosed.
Under the agreement, Sealed Air will acquire global rights to certain assets relating to the Dow ETHAFOAM™ polyethylene foam product lines, including a license to process technology, customer contracts, trademarks, and certain production and process equipment. The products include polyethylene based foam products sold under the ETHAFOAM™, ENVISION™, SYNERGY™ and EQUIFOAM™ as well as LAMDEX™ trademarks. As a part of the transaction, Dow will supply products to Sealed Air for a period of up to 18 months following the close of the transaction from Dow's manufacturing facilities in Hanging Rock, Ohio, and Drusenheim, France. Following that period Sealed Air will commence manufacturing of the products at its own facilities.
The divestiture of Dow's ETHAFOAM assets will enable the major to pursue additional projects that deliver value to customers and to the Company. This divestment by Dow is part of its strategy to continually evaluate its portfolio, preferentially investing in technology and growth opportunities that offer strategic growth in core markets where the company can be a leader over the long-term.