Maryland-based WR Grace & Co would be acquiring the polypropylene licensing and catalyst business of Dow Chemical Co. The price tag for the unit was USD 500 million. According to Dow, the sale transaction would include the customer contracts, licenses as well as inventory of its polypropylene-catalyst plant located in Norco, Louisiana.

In another statement, Grace said the sale was expected to be completed at the end of the year after passing regulatory approvals. Blackstone Advisory Partners advised Grace on the deal. Since April 2001, Grace had been placed under Chapter 11 bankruptcy protection.

Dow is the biggest chemicals company in the US. In March, it had announced its plans to sell the unit as part of its strategy to divest nearly USD 1.5 billion of its assets. The divestment would enable it to concentrate on businesses which are most lucrative for the firm.

Dow Chemical Chairman and Chief Executive Officer Andrew Liveris also said, "We are planning further proactive divestments in the next 12 months."