Macquarie, Dow Launch $2.4 Billion Gulf Coast Pipeline Infrastructure Partnership
Macquarie Asset Management has announced a new partnership with Dow Inc. to form Diamond Infrastructure Solutions, a venture focused on managing and expanding key U.S. Gulf Coast infrastructure assets, including pipelines, storage, and industrial services.
A fund managed by Macquarie will acquire a 40% equity stake in Dow’s Gulf Coast infrastructure, with an option to increase its share to 49% within six months of closing. The initial transaction is expected to generate approximately $2.4 billion in cash proceeds for Dow, with the potential to reach $3.0 billion.
Diamond Infrastructure Solutions will operate across five Dow sites in Texas and Louisiana: Freeport, Texas City, and Seadrift in Texas, and Plaquemine and St. Charles in Louisiana. Its assets include pipelines and storage facilities with connections to major natural gas, NGL, and olefin hubs in the region. The venture aims to deliver enhanced operational efficiency, safety, and reliability to Dow and other industrial customers.
“This transaction further strengthens our financial flexibility and enables continued cash deployment toward the most attractive opportunities,” said Jim Fitterling, chair and CEO of Dow. “We are confident that Macquarie is the right industrially minded partner due to our shared values to ensure the ongoing safe and reliable operations of these assets to support Dow and industrial customers across the U.S. Gulf Coast.”
Ben Way, Global Head of Macquarie Asset Management, emphasized the partnership's strategic focus. “We believe that our significant infrastructure experience and capabilities, coupled with Dow’s operational excellence, will deliver additional efficiencies and long-term growth.”
Macquarie Asset Management, a global infrastructure asset manager, has invested or committed more than $21 billion in 54 portfolio companies across the Americas over the last 21 years. The Diamond venture reflects Macquarie's approach to improving essential infrastructure assets for reliable service and sustainable growth.
The transaction is expected to close in the first half of 2025, subject to regulatory approvals.
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