Key Takeaways
- Dow has finalized the divestiture of its Telone™ soil fumigation business to TriCal Soil Solutions.
- Transaction value of $121 million, equivalent to approximately 10x 2024 Operating EBITDA.
- TriCal Soil Solutions, a specialist in soil fumigation, will integrate Telone™ into its portfolio and pursue focused growth in the agriculture sector.
- The company continues to streamline operations, prioritizing core downstream businesses as part of its “best-owner mindset” strategy.
Dow Advances Portfolio Streamlining with Telone™ Sale
Dow (NYSE: DOW) has officially completed the sale of its Telone™ soil fumigation product line to TriCal Soil Solutions, Inc., a global leader in soil fumigation products and services. The transaction, valued at $121 million, is part of the company’s broader initiative to concentrate on its downstream core business areas.
“We are pleased to announce the successful completion of this divestiture, a move that aligns with Dow’s strategy to focus on its core, downstream markets,” said Marco ten Bruggencate, President of Dow’s Industrial Intermediates & Infrastructure segment. “The Telone product line will benefit from focused investments to capitalize on growth in the agricultural market segments it serves.”
The company emphasized that TriCal is well-positioned to expand the Telone™ business through its dedicated focus and experience in serving agricultural customers worldwide.
Transaction Overview
| Buyer | TriCal Soil Solutions, Inc. |
|---|---|
| Seller | Dow |
| Product Sold | Telone™ soil fumigation business |
| Transaction Value | $121 million |
| Valuation Metric | ~10x 2024 Operating EBITDA |
| Purpose | Dow’s strategic portfolio focus and TriCal’s growth in ag markets |
Dow’s Focus on Core Business and Agricultural Growth
The divestiture reflects Dow’s commitment to a “best-owner mindset”, wherein the company seeks to allocate resources and focus toward businesses with the strongest alignment to its long-term strategy. For TriCal, the acquisition of Telone™ complements its existing product lineup and expands its ability to serve the evolving needs of global agriculture markets, particularly in soil health and fumigation.
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