December 4, 2024 – Dow Chemical Completes $150 Million Sale of Soft Packaging Adhesive Business to Arkema
Global chemical giant Dow Chemical has announced the successful completion of the sale of its soft packaging composite adhesive business, part of its Packaging & Specialty Plastics division, to Arkema, a leading player in the global specialty materials industry. The transaction, valued at a staggering $150 million, marks a significant strategic move for Dow.
The divestiture, which was publicly disclosed on May 2nd this year, encompasses five key manufacturing sites located in Italy, the United States, and Mexico. These facilities specialize in the production of solvent-based, solventless laminating adhesives, and heat-seal coatings, widely used in the packaging industry. By selling off this segment, Dow Chemical aims to streamline its business structure and focus more intently on its core growth areas.
Despite this partial exit from the adhesive market, Dow retains a strong portfolio of adhesive products, including water-based composite adhesives, acrylic adhesives, and adhesives for consumer solutions and MobilityScience™. These retained businesses are not only pivotal to Dow’s future growth but also align closely with its long-term sustainability strategy, highlighting the company’s ongoing commitment and investment in specific material domains.