Macquarie Asset Management has announced a definitive agreement to acquire a 40% equity stake in selected U.S. Gulf Coast infrastructure assets of Dow Inc., reinforcing a strategic collaboration between the two companies. The partnership, named Diamond Infrastructure Solutions (“Diamond”), will serve as a dedicated infrastructure provider, supporting Dow and other industrial customers with a comprehensive range of services. These include power and steam production, pipeline operations, environmental management, and general site infrastructure, ensuring reliability, efficiency, and safety.
Strategic Vision for Diamond Infrastructure Solutions
Diamond will operate as a specialist infrastructure platform, enabling Dow to focus on its core operations while enhancing operational efficiencies and expanding its customer base. The assets included in this partnership span five manufacturing sites: Freeport, Texas City, and Seadrift in Texas, as well as Plaquemine and St. Charles in Louisiana. Additionally, the agreement covers pipeline and storage assets interconnected with major natural gas and olefin hubs along the U.S. Gulf Coast.
Ben Way, Global Head of Macquarie Asset Management, emphasized the value of infrastructure platforms like Diamond, stating, “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. Our infrastructure expertise combined with Dow’s operational excellence will foster efficiency and sustained growth.”
Financial and Operational Implications
Under the agreement, Dow is set to receive approximately $2.4 billion in initial cash proceeds for the 40% equity stake, with the potential to reach up to $3.0 billion for a 49% equity stake if Macquarie exercises its option to expand ownership within six months of the deal’s closure. This partnership underscores Dow’s commitment to optimizing its portfolio, as noted by Jim Fitterling, Dow’s Chair and CEO: “This transaction strengthens our financial flexibility, allowing us to deploy capital toward high-value opportunities and deliver long-term benefits to stakeholders.”
The transaction is slated to close in the first half of 2025, pending regulatory approvals and customary closing conditions.
A Focus on Innovation and Growth
Diamond will integrate cutting-edge infrastructure solutions to streamline operations and bolster sustainability efforts across its U.S. Gulf Coast locations. This collaboration is poised to leverage Dow’s industrial expertise and Macquarie’s extensive experience in managing and operating large-scale infrastructure assets.
Background on Macquarie Asset Management
Macquarie Asset Management is a global leader in asset management, overseeing approximately $633 billion in assets. With a strong presence across real estate, credit, equities, and real assets, Macquarie is renowned for its innovative approach to asset management and sustainable investment strategies.
Founded in 1969, Macquarie Group employs over 20,600 professionals across 34 markets, delivering tailored solutions in asset management, finance, banking, and advisory services. Macquarie’s commitment to building and improving essential infrastructure aligns seamlessly with the goals of this partnership.
