Macquarie Asset Management Partners with Dow to Launch Diamond Infrastructure Solutions
Macquarie Asset Management has announced a new partnership with Dow Inc. (NYSE: DOW) to launch Diamond Infrastructure Solutions, a specialist infrastructure platform designed to unlock growth opportunities by providing third-party customers access to Dow’s U.S. Gulf Coast facilities. The partnership will focus on leveraging Dow’s operational expertise and Macquarie Asset Management’s proficiency in infrastructure and energy to enhance service offerings, efficiency, and reliability.
As part of the deal, a fund managed by Macquarie Asset Management will acquire a 40% equity stake in select Dow infrastructure assets located in the U.S. Gulf Coast, with an option to increase this share to 49% within six months after the transaction closes. This strategic partnership is expected to generate initial cash proceeds for Dow of approximately $2.4 billion, with the potential for total proceeds of up to $3.0 billion if Macquarie exercises its option to increase its stake.
Diamond Infrastructure Solutions: A New Business Model
Diamond Infrastructure Solutions will be a dedicated infrastructure provider to Dow and other industrial clients, focusing on key services such as power and steam production, pipelines, environmental operations, and general site infrastructure. The platform will operate across five of Dow’s manufacturing sites in the U.S. Gulf Coast, located in Freeport, Texas City, and Seadrift in Texas, as well as Plaquemine and St. Charles in Louisiana. These assets include significant pipeline and storage facilities, connecting to major natural gas, NGL, and olefin hubs throughout the region.
The goal of Diamond Infrastructure Solutions is to provide world-class infrastructure services to Dow and third-party industrial customers with a focus on maximizing operational efficiency, reliability, and safety. As a specialist infrastructure company, Diamond will have a more strategic focus, streamlining operations and focusing on acquiring new customers while maintaining high operational standards.
“We believe that the development of platforms like Diamond Infrastructure Solutions will unlock significant value by improving operational efficiency and supporting long-term growth,” said Ben Way, Global Head of Macquarie Asset Management. “This partnership brings together Macquarie’s deep infrastructure expertise with Dow’s operational excellence, enabling us to enhance the reliability of these vital assets while offering growth opportunities for new customers.”
Macquarie Asset Management’s Infrastructure Expertise
Macquarie Asset Management is a global leader in infrastructure investment, with a track record of investing in essential infrastructure assets that offer strong growth potential. The firm has specific expertise in managing industrial parks, regulated utilities, and other infrastructure platforms tailored to the needs of industrial customers. Over the past 21 years, Macquarie has committed more than $21 billion to 54 portfolio companies across the Americas, strengthening its position as a prominent player in the infrastructure space.
The firm’s commitment to operational excellence is key to the success of this partnership, as it aims to improve the efficiency and long-term performance of the assets it manages. Macquarie’s focus on essential, high-quality infrastructure will benefit both Dow and other third-party customers relying on these assets for their operations.
Dow’s Commitment to Value Maximization
For Dow, this partnership represents a significant step in maximizing value across its portfolio. By selling a minority stake in its U.S. Gulf Coast infrastructure assets, Dow expects to enhance its financial flexibility, with proceeds that will be used to reinvest in high-priority projects and opportunities that will create long-term value for its stakeholders.
“Today’s announcement reflects Dow’s ongoing commitment to optimizing the value of our assets,” said Jim Fitterling, Chairman and CEO of Dow. “By partnering with Macquarie Asset Management, we are ensuring that these assets will be operated safely, efficiently, and reliably, providing critical infrastructure support to both Dow and other industrial customers in the U.S. Gulf Coast. We are confident that Macquarie is the ideal partner for this transaction, as we share common values and goals in ensuring the long-term success of these essential assets.”
The transaction, which is expected to close in the first half of 2025, is subject to regulatory approvals and customary closing conditions. Following the transaction, Dow will continue to manage and operate the assets, with Macquarie holding an equity stake and a shared interest in the platform’s success.
Financial and Strategic Implications
As part of the agreement, Macquarie Asset Management will initially acquire a 40% stake in select U.S. Gulf Coast infrastructure assets, with an option to increase its share to 49% within six months. This flexibility enables Macquarie to deepen its involvement in the project while also allowing Dow to maintain a strong presence in the business. The transaction is expected to generate cash proceeds of approximately $2.4 billion for Dow based on the initial sale, with the potential for total proceeds of $3.0 billion if Macquarie exercises its option.
The funds generated from the sale will provide Dow with additional financial resources to deploy in its most attractive opportunities, contributing to the company’s ongoing strategy of investing in high-value, growth-focused projects.
