Dow Agrees to Buy South African Firm

Dow Chemical Co. agreed to buy Sentrachem Ltd. for $445 million in what would be the largest U.S. acquisition of a publicly traded South African company since apartheid ended in 1994. The purchase price for Sentrachem, which has posted losses for the last several years, represents a 33% premium over Sentrachem’s closing price of Friday. Dow, known for its Handi-Wrap and Saran Wrap brands, among other products, will add Sentrachem’s $1.2 billion in annual sales to its own $20 billion. Dow returned to doing business in South Africa in 1995 after an eight-year absence. Sentrachem is a maker of specialty chemicals whose products include polypropylene, polyethylene, latex, rubber and chlor-alkali derivatives. “The acquisition reinforces our strategic direction to enhance Dow’s performance-chemicals portfolio, with the addition of Sentrachem’s strong specialty and agricultural chemical businesses,” Dow Chief Executive William Stavropoulos said. Shares of Midland, Mich.-based Dow closed down 19 cents at $93.88 on the New York Stock Exchange.