Dow Announces Plans to Divest its Dowpharma Small Molecules Business Associated with Mirfield and Cambridge, UK Sites
The Dow Chemical Company (NYSE:DOW ) announced today plans to divest the portion of its Dowpharma Small Molecules business associated with its United Kingdom sites in Mirfield and Cambridge to Dr. Reddy’s Laboratories (EU) Limited, a subsidiary of Dr. Reddy’s Laboratories Limited (NYSE:RDY) of Hyderabad, India. The transaction is scheduled to close on April 30, 2008 pending regulatory approval.
The planned divestment will include associated product and process technology, intellectual property, and trademarks as well as the transfer of the Mirfield and Cambridge facilities.
Employees directly related to the impacted business located at the Cambridge and Mirfield sites will become part of Dr Reddy’s on Closing.
The Dowpharma sites and businesses in the United States, as well as the Pfenex Expression Technology™ remain with Dow and are not part of the transaction. However, Dr. Reddy’s will also have a non-exlcusive license to the Pfenex Expression Technology™ to facilitate existing biocatalysis development.
“This planned divestment reflects Dow’s commitment to actively manage its portfolio, divesting businesses that are no longer strategic to the Company and preferentially investing in growth and technology opportunities in specific core markets and market facing businesses where we can be a leader over the long term,” said Peter H. Davies, Business Group President, Designed Polymers and Latex. “We believe Dr. Reddy’s is well-equipped to help these businesses reach full potential because the company’s core operations and capabilities are strongly aligned with the specialty chiral and biocatalysis custom manufacturing business. We are confident our customers will be in good hands, and will work closely with Dr. Reddy’s to ensure a smooth transition.”
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