Macquarie Asset Management announces partnership with Dow

Macquarie Asset Management announced that a fund managed by Macquarie Asset Management has entered into a definitive agreement to acquire a 40% equity stake in select U.S. Gulf Coast infrastructure assets of Dow Inc. (DOW) This new partnership, Diamond Infrastructure Solutions, will be a specialist infrastructure provider to Dow and other industrial customers at its five locations in Texas and Louisiana, offering comprehensive services to its tenants with a focus on world class efficiency, reliability and safety. As a dedicated infrastructure company, Diamond will be a new business model with greater strategic focus on operational efficiencies and new customer acquisition. Diamond is comprised of certain non-product producing assets (power and steam production, pipelines, environmental operations and general site infrastructure) located at five of Dow’s manufacturing sites in the U.S. Gulf Coast: Freeport, Texas City, and Seadrift in Texas, as well as Plaquemine and St. Charles in Louisiana. Pipeline and storage assets span across the USGC with connections to major natural gas, NGL and olefin hubs. Dow expects to receive initial cash proceeds of approximately $2.4B based on the sale of its 40% minority equity stake with the potential to generate cash proceeds up to approximately $3B for a 49% minority equity stake. Macquarie Asset Management will have the option to increase its equity share to 49% within six months of closing. Dow and Macquarie Asset Management expect to close the transaction in the first half of 2025, subject to customary regulatory approvals and other closing conditions.