DOW to Sell 40% Stake in Select US Gulf Coast Infrastructure Assets

Dow Inc. DOW stated that it has reached a definitive deal to sell a 40% equity interest in select U.S. Gulf Coast infrastructure assets to a fund managed by Macquarie Asset Management, a prominent global infrastructure and energy asset manager.Diamond Infrastructure Solutions, the new partnership, will provide specialized infrastructure to Dow and other industrial customers at five locations in Texas and Louisiana, giving comprehensive services to its tenants with a focus on world-class efficiency, dependability and safety. Diamond Infrastructure, as a dedicated infrastructure company, will be a new business model with a stronger strategic focus on operational efficiency and new client acquisition. Its profitable growth will benefit Dow and Macquarie Asset Management's bottom line.Dow anticipates getting about $2.4 billion in initial cash proceeds from the sale of its 40% minority equity interest, with the potential to generate cash proceeds of up to roughly $3.0 billion for a 49% minority stake. Macquarie Asset Management will have the option to increase its ownership stake to 49% within six months of the transaction's closure. Dow and Macquarie Asset Management expect the acquisition to be completed in the first half of 2025, subject to usual regulatory clearances and other closing conditions.This deal increases financial flexibility and allows for continuous cash deployment into the most attractive initiatives that will generate long-term value for stakeholders, DOW noted. The business is confident that Macquarie is the appropriate industrially minded partner because of its shared values in ensuring safe and reliable operation of these assets to support Dow and industrial clients along the U.S. Gulf Coast.DOW’s shares are down 17.7% in a year against the industry’s 1.6% rise.Image Source: Zacks Investment ResearchDow, on its third-quarter call, said that it will continue to operate with discipline as it capitalizes on areas of demand strength while leveraging its scale and advantaged cost positions on a global basis. Its strong financials will continue to support its growth investments focused on higher-value businesses and regions, where it has a competitive cost advantage and seeing resilient demand. DOW expects these investments to deliver more than $3 billion in underlying earnings by 2030.Dow Inc. Price and Consensus Dow Inc. price-consensus-chart | Dow Inc. QuoteDOW’s Rank & Key PicksDOW currently carries a Zacks Rank #5 (Strong Sell).Better-ranked stocks in the basic materials space include Carpenter Technology Corporation CRS, DuPont de Nemours, Inc. DD and CF Industries Inc. CF. Carpenter Technology currently carries a Zacks Rank #1 (Strong Buy). CRS beat the Zacks Consensus Estimate in each of the last four quarters, with the average earnings surprise being 14.1%. The company's shares have soared 177.8% in the past year. You can see the complete list of today's Zacks #1 Rank stocks here.The Zacks Consensus Estimate for DD’s current-year earnings is pegged at $3.88 per share, indicating a year-over-year rise of 11.5%. DD, a Zacks Rank #2 (Buy) stock, beat the consensus estimate in each of the last four quarters, with the average earnings surprise being 12.9%. The company's shares have rallied roughly 17.1% in the past year.The Zacks Consensus Estimate for CF’s current-year earnings is pegged at $6.32 per share. CF, a Zacks Rank #1 stock, beat the consensus estimate in two of the last four quarters while missed twice, with the average earnings surprise being 10.3%. CF has rallied around 16.8% in the past year. Only $1 to See All Zacks' Buys and SellsWe're not kidding.Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent.Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators,and more, that closed 228 positions with double- and triple-digit gains in 2023 alone.See Stocks Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report DuPont de Nemours, Inc. (DD): Free Stock Analysis Report Dow Inc. (DOW): Free Stock Analysis Report CF Industries Holdings, Inc. (CF): Free Stock Analysis Report Carpenter Technology Corporation (CRS): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks