Dow announced that it has signed an agreement to sell its flexible packaging laminating adhesives business, within Dow's Packaging & Specialty Plastics segment, to Arkema. This transaction enables the Company to further increase its focus on core, high-value downstream businesses. The proceeds of this transaction will support Dow's capital allocation priorities, including accelerating growth strategies and delivering long-term shareholder value.

Five manufacturing sites in Italy, the United States and Mexico will transfer to Arkema and include Solvent-Based Laminating Adhesives, Solventless Laminating Adhesives, and Heat Seal Coatings product families. The transaction value is $150 million or approximately 10 times forecasted 2024 EBITDA. The transaction is expected to close by the end of 2024, subject to regulatory approval.

Dow will retain its water-based laminating adhesives and acrylic adhesives businesses in Packaging and Specialty Plastics, as well as adhesive solutions in Dow Consumer Solutions and MobilityScience?, which align with the Company's market growth strategies. Dow and Arkema are committed to delivering a seamless transition for all stakeholders.