International.
The Dow Chemical Co. announced the successful completion of the dow corning property restructuring operation. Dow now owns 100% of Dow Corning's silicone business, which had revenues of more than $4.5 billion in 2015 and is expected to generate more than $1 billion of annual EBITDA for Dow in full run rate synergies.
A pioneer and current leader in silicones, silicon-based technology and innovation, Dow Corning was formerly a 73-year joint venture with a 50:50 agreement between Dow and Corning Inc. Dow and Corning will maintain the same proportional equity interests in the Hemlock Semiconductor Group, a polysilicon producer in which Dow Corning was the majority shareholder.
Dow Corning will operate as a subsidiary of Dow and will be headquartered with Dow in Midland, Michigan.
Dow's immediate focus is on seamlessly integrating Dow Corning into its existing operations and quickly capturing growth and synergy costs. The leaders of both companies have worked together to define the design of the organization for the rapid implementation of the post-closure. Dow expects the transaction to increase to operate earnings per share (EPS), cash flow from operations and free cash flow in the first full year after the closing of the transaction.
