Wedoany.com Report-Jun 3, Dow Inc., based in Midland, Michigan, has announced the signing of a sale and purchase agreement to divest its 50% ownership in DowAksa Advanced Composites Holdings BV (DowAksa) to Aksa Akrilik Kimya Sanayii A.Ş., a subsidiary of Akkök Holding in Türkiye. Aksa, which currently owns the remaining 50% of the joint venture, will acquire Dow’s entire stake, making it the sole owner of DowAksa.

DowAksa was established in 2012 as a joint venture between Dow and Aksa to produce advanced carbon fiber composites. The decision to exit this partnership aligns with Dow’s strategic focus on its core downstream businesses. Dow stated that this move is part of its ongoing “best-owner mindset” strategy, which involves evaluating portfolio assets and reallocating capital toward areas with higher long-term value.

The sale is expected to generate $125 million in proceeds for Dow. This amount reflects an enterprise value that is approximately 10 times the projected operating EBITDA of DowAksa for 2025, after accounting for debt. The transaction is anticipated to close in the third quarter of 2025, subject to standard regulatory approvals and closing conditions.

Dow plans to use the proceeds to support its balanced capital allocation framework, which includes reinvestment in strategic growth, strengthening the balance sheet, and returning value to shareholders. This transaction follows other recent divestitures by Dow, including the completed sales of its soil fumigation business line and a portion of its infrastructure assets located along the U.S. Gulf Coast.

BNP Paribas served as the exclusive financial advisor to Dow in connection with the sale.

This divestment represents a continued streamlining of Dow’s portfolio as it concentrates on areas where it can maintain a competitive advantage and create more value through innovation, operational efficiency, and customer-focused solutions. Meanwhile, Aksa, a well-established Turkish chemical company, is expected to leverage full ownership of DowAksa to further its goals in advanced materials production, particularly in carbon fiber technologies.

With the closure of this transaction, DowAksa will transition into a wholly owned entity under Aksa Akrilik Kimya Sanayii A.Ş., positioning it to independently pursue growth strategies in global composite markets.

The agreement underlines Dow's ongoing commitment to disciplined capital management and strategic focus, while providing Aksa with expanded capabilities in high-performance composite materials.