Linklaters is representing Dow in its partnership transaction with Macquarie Asset Management to launch $6 billion Diamond Infrastructure Solutions
Dow (NYSE: DOW) today announced that it has entered into a definitive agreement to sell a 40% equity stake in select U.S. Gulf Coast infrastructure assets to a fund managed by Macquarie Asset Management, a leading global infrastructure and energy asset manager. This new partnership, Diamond Infrastructure Solutions (“Diamond”), will be a specialist infrastructure provider to Dow and other industrial customers at its five locations in Texas and Louisiana. As a dedicated infrastructure company, Diamond will be a new business model with greater strategic focus on operational efficiencies and new customer acquisition.
Dow announced that it expects to receive initial cash proceeds of approximately $2.4 billion based on the sale of its 40% minority equity stake with the potential to generate cash proceeds up to approximately $3.0 billion for a 49% minority equity stake.
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 (USGC): 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.
Click here for Dow's press release.
The Linklaters team representing Dow in this transaction is led by George Casey, Global Chairman of Corporate (New York), Heiko Schiwek, Global Leader of the Chemicals Sector (New York), Gregory Gewirtz, M&A Partner (New York), Yiting Du, M&A Counsel (New York), Wendy Suh, M&A Senior Associate (New York), and Michael Lomtevas, M&A Associate (New York).
The team joined Linklaters in January 2024, and has been working with Dow on all aspects of the transaction, starting with helping develop the concept and structure of a standalone infrastructure business, structuring and implementing the carve-out and stand-up of the business and negotiating the definitive agreement and carve-out commercial agreements with Macquarie.
Other New York based Linklaters attorneys involved in the transaction include: Partner Danelle Le Cren, Partner Andrew Gaines, Senior Counsel Janet Lee, Senior Counsel Lauren Bachtel, Counsel Yelena Nersesyan, Counsel Shruti Chopra, Counsel Andres Loera, Associate Catherine Yuen, Associate Fraser Goodlad, Associate Maddy Hayes, Associate Krystal Dillon, Associate Harrie Im, Associate Lauren Wells and a number of other team members.
