Macquarie Asset Management has announced a new partnership with Dow to form Diamond Infrastructure Solutions. This initiative will leverage Dow's operational capabilities and Macquarie's infrastructure expertise to provide growth opportunities by opening access to Dow’s U.S. Gulf Coast sites for third-party customers.
The partnership involves a fund managed by Macquarie acquiring an initial 40% stake in select Dow U.S. Gulf Coast infrastructure assets, with the option to increase this stake to 49% within six months of closing. The initial transaction is expected to generate cash proceeds of approximately $2.4 billion for Dow, with potential total proceeds reaching $3 billion.
Diamond Infrastructure Solutions will serve as a specialist provider at five of Dow’s locations in Texas and Louisiana, offering services focused on efficiency, reliability, and safety. The assets involved include power and steam production, pipelines, environmental operations, and general site infrastructure across these manufacturing sites.
Ben Way, Global Head of Macquarie Asset Management, stated: “As a long-term owner of essential infrastructure, we recognize the value that can be unlocked through the development of infrastructure platforms like Diamond Infrastructure Solutions.” He added that their experience combined with Dow’s excellence would drive efficiencies and growth.
Jim Fitterling, chair and CEO of Dow, remarked: “Today’s announcement demonstrates Dow’s ongoing commitment to value maximizing actions across our portfolio.” He expressed confidence in Macquarie as an industrially minded partner sharing their values for safe operations supporting customers across the Gulf Coast.
The transaction is expected to close in the first half of 2025 following regulatory approvals. BMO Capital Markets served as financial advisor to Macquarie Asset Management while Sidley Austin LLP provided legal counsel.