Lazard Middle Market Advised Dow Chemical Company
in the Sale of its Thermoplastic Polyurethane Business to Lubrizol

 

TRANSACTION DESCRIPTION

Lazard Middle Market advised Dow Chemical Company (“Dow”) in the sale of its Thermoplastic Polyurethane (“TPU”) Business to the Lubrizol Corporation (“Lubrizol”).  The transaction was structured as an asset sale.

TRANSACTION HIGHLIGHTS

Located in La Porte, Texas, Dow's TPU product line spans the continuum between elastomeric and rigid TPU properties. The Dow TPU business had 2007 revenues of approximately $85 million.  The two key brands representing the business are:

• PELLETHANE(TM) Thermoplastic Polyurethane Elastomers, used in a variety of high-value elastomer applications including footwear, medical tubing, automotive, film and industrial/engineering applications; and

• ISOPLAST(TM) Engineering Thermoplastic Polyurethane Resins, used in a variety of niche, specialty applications that require its unique combination of high-end engineering plastic properties that include clarity, impact strength and chemical resistance.

With 50 years of industry experience, Lubrizol is a global leader in thermoplastic elastomers, marketing products under the Estane Thermoplastic Polyurethane brand name. Estane TPU is an engineered, highly versatile thermoplastic elastomer that is utilized in film extrusion, tubing, cable jacketing, injection molding, calendaring and solution processes for applications such as textiles, wire and cable, hose and tube, optical, industrial, agriculture and others.

"We are excited to be adding Dow's TPU capabilities and products to our existing Estane Engineered Polymers business. Given Dow's strong TPU brand recognition in the U.S., this addition further supports our strategy of growth through geographic expansion as it will allow us to introduce new products and technology to international markets where Dow's TPU business has had limited penetration," said Mike Vaughn, Lubrizol vice president, Estane Engineered Polymers. "The acquisition continues to strengthen and expand our product portfolio and provides us access into new end uses, such as niche medical applications, which we believe will benefit our customers worldwide."

The agreement includes all commercial, production and research and development assets of the Dow TPU business. Lubrizol will be assuming approximately 40 full-time employees. All Dow TPU products will be transitioned immediately to Lubrizol. The Dow brand names will be retained and unified under the Estane Engineered Polymers business.

ABOUT LAZARD MIDDLE MARKET

Lazard Middle Market LLC (www.lazardmm.com), a subsidiary of Lazard Ltd (NYSE:LAZ), provides advice on mergers and acquisitions, restructuring, and financings to the middle market. Lazard Middle Market’s investment bankers operate from offices in Minneapolis, New York, Chicago, Charlotte and Los Angeles with full access to the industry expertise, senior board-level relationships, and local perspectives of Lazard’s bankers in 40 cities across 24 countries in North America, Europe, Asia, Australia, Central and South America.

 

 

If you would like more information about this transaction, please contact:

 

Bob Frost
robert.frost@lazardmm.com
612-339-0500