Dow Inc. announced the agreement to sell its rail infrastructure assets and related equipment at six major North American sites to Watco Companies (Watco), a Pittsburg, Kansas-based transportation company providing transportation, terminal and port, supply chain, and mechanical solutions for customers throughout North America and Australia. Dow expects to receive cash proceeds in excess of US$ 310 million as part of the transaction. The assets are located at Dow’s sites in Plaquemine and St. Charles, Louisiana; Freeport and Seadrift, Texas; and Ft. Saskatchewan and Prentiss in Alberta, Canada.

Dow and Watco will enter into initial long-term service agreements, providing reliable and cost-advantaged services for existing Dow businesses at the sites where the assets reside. Dow expects Watco’s significant rail expertise and capabilities will deliver additional operational efficiencies and opportunities for growth over time.

Dow and Watco are working closely to ensure a seamless transition. The transaction is expected to close in the fourth quarter of 2020, subject to customary closing conditions.

Goldman Sachs acted as financial advisor to Dow, and Mayer Brown & Thompson Hine provided legal support.