Dow Finds Buyer for Agrofresh Food Packaging Maker

In a deal set to close in the third quarter, Dow Chemical plans to sell its Agrofresh food-packaging business to Boulevard Acquisition, the public investment vehicle of Avenue Capital, for a total consideration of around $860 million.

Boulevard has agreed to pay $626 million in cash and 18.4 million of its own shares for the company, in which Dow will initially hold a stake of about 40% and Boulevard investors own around 60%.

Agrofresh was one of the first businesses put up for grabs by Dow CEO Andrew Liveris in an asset sale now estimated to generate revenues of around $11 billion.

Under pressure from activist shareholder Daniel Loeb and his Third Point hedge fund, Dow recently also agreed to sell its chlorine business to Olin Corp. for about $4.2 billion. It now says the move will cost up to 1,750 jobs.