Tri-City Sun

Dow has announced a new partnership with Macquarie Asset Management, which involves the launch of Diamond Infrastructure Solutions. This collaboration will see a fund managed by Macquarie acquire an initial 40% stake in certain Dow U.S. Gulf Coast infrastructure assets, with the option to increase this equity stake to 49% within six months after closing.

The transaction is expected to bring initial cash proceeds of approximately $2.4 billion to Dow, with the potential total reaching up to $3.0 billion if Macquarie exercises its option for additional shares. The proceeds from this sale are intended for higher value-creating growth investments.

Diamond Infrastructure Solutions will serve as a dedicated infrastructure provider at Dow's sites in Texas and Louisiana, offering services focused on efficiency, reliability, and safety. This venture aims to leverage Dow's operational strengths alongside Macquarie's expertise in infrastructure management.

Jim Fitterling, chair and CEO of Dow, stated that the deal "demonstrates Dow's ongoing commitment to value maximizing actions across our portfolio," adding that it strengthens financial flexibility and enables further investment in attractive opportunities.

The assets involved include power and steam production facilities, pipelines, environmental operations, and general site infrastructure located at five of Dow’s manufacturing sites: Freeport, Texas City, Seadrift in Texas; Plaquemine and St. Charles in Louisiana.

Ben Way from Macquarie Asset Management expressed confidence in the partnership’s potential for unlocking value through infrastructure development: "We believe that our significant infrastructure experience and capabilities, coupled with Dow's operational excellence, will deliver additional efficiencies and long-term growth."

Citi and Goldman Sachs served as financial advisors to Dow during this transaction while Linklaters provided legal support.

Dow operates globally across 31 countries employing approximately 35,900 people and reported sales of about $45 billion in 2023. Meanwhile, Macquarie Asset Management manages approximately $US633.7 billion in assets across various markets.

Both companies emphasize their commitment to ensuring safe operations throughout this transition period as they await customary regulatory approvals expected by mid-2025.