The sale reflects Dow’s commitment to prioritizing its core operations, particularly in downstream markets. By divesting Telone, Dow aims to streamline its focus while enabling the product to thrive under TriCal’s specialized expertise in the agricultural sector. The agreement supports Dow’s approach to ensuring its assets are managed by entities best positioned to maximize their potential.
Marco ten Bruggencate, president of Dow’s Industrial Intermediates & Infrastructure operating segment, said: “We are pleased to announce the successful completion of this divestiture, a move that aligns with Dow’s strategy to focus on its core, downstream markets. The Telone product line will benefit from focused investments to capitalize on growth in the agricultural market segments it serves.”
The transaction, valued at $121 million, represents approximately 10 times Telone’s 2024 Operating EBITDA. This financial structure underscores the strategic fit of the sale, allowing Dow to reallocate resources to high-priority areas while ensuring Telone’s continued development in the agricultural market.
TriCal Soil Solutions, known for its expertise in soil fumigation, is well-equipped to advance Telone’s role in supporting sustainable agriculture. The acquisition enables TriCal to enhance its offerings, meeting the evolving needs of farmers and agricultural businesses. Meanwhile, Dow continues to strengthen its focus on innovation and efficiency within its core industrial and infrastructure segments.
This transaction marks a significant step for both companies. For Dow, it reinforces a strategic shift toward operational efficiency and market alignment. For TriCal, it provides an opportunity to expand its portfolio and drive growth in the soil fumigation sector. The agreement ensures that Telone remains a valuable tool for agricultural productivity under new ownership dedicated to its success.
