Columbia-based W.R. Grace & Co. will acquire the Polypropylene Licensing and Catalysts unit of The Dow Chemical Company for $500 million.
The transaction is expected to close by the end of 2013, according to W.R. Grace .
Coincidentally, the 159-year-old chemical company expects to emerge from bankruptcy around that time as well, said Rich Badmington, vice president of global communications for W.R. Grace.
Since filing its Chapter 11 petition in 2001, Grace has acquired a number of businesses and assets in order to grow and eventually come out of bankruptcy.
“This is a much more substantial acquisition than any we have executed over the last 10 years,” said Badmington. “This will be an important new dimension of our business.”
Dow announced its intent to sell this business unit in March, as part of a larger effort to divest nearly $1.5 billion in assets.
“Today’s announcement is another clear demonstration of Dow’s rigorous focus on selectively shifting our portfolio away from assets that are no longer a strategic fit and optimizing their value,” said Dow chairman and CEO Andrew N. Liveris in a statement Friday.
W.R. Grace will add about 90 employees and acquire the unit’s manufacturing facility in Norco, La., as part of the deal.