Dow Inc. (NYSE: DOW ) shares are trading higher on Monday. The company entered into a definitive agreement to sell a 40% equity stake in select U.S. Gulf Coast infrastructure assets to a fund managed by Macquarie Asset Management .

Dow anticipates initial cash proceeds of approximately $2.4 billion from the sale of its 40% equity stake, with potential proceeds reaching up to $3.0 billion if Macquarie Asset Management exercises its option to increase its stake to 49% within six months of closing.

The transaction is expected to close in the first half of 2025, pending regulatory approvals and customary closing conditions.

The new partnership, Diamond Infrastructure Solutions, will serve as a specialized infrastructure provider for Dow and other industrial clients at five locations in Texas and Louisiana.

Diamond includes non-product producing assets such as power and steam production, pipelines, environmental operations, and general site infrastructure across Dow’s U.S. Gulf Coast manufacturing sites in Freeport, Texas City, Seadrift (Texas), Plaquemine, and St. Charles (Louisiana).

This dedicated business model is expected to drive profitable growth, benefiting both Dow and Macquarie Asset Management. Dow will retain majority ownership to ensure safe and reliable operations.

Jim Fitterling, chair and chief executive officer of Dow, said, “This transaction further strengthens our financial flexibility and enables continued cash deployment towards the most attractive opportunities that will create long-term value for our stakeholders.”

Ben Way, Global Head of Macquarie Asset Management, said, “As a long-term owner of essential infrastructure, we recognize the value that can be unlocked through the development of infrastructure platforms like Diamond Infrastructure Solutions.”

“We believe that our significant infrastructure experience and capabilities, coupled with Dow’s operational excellence, will deliver additional efficiencies and long-term growth.”

Investors can gain exposure to the stock via Materials Select Sector SPDR (NYSE: XLB ) and FT Vest DJIA Dogs 10 Target Income ETF (BATS: DOGG ).

Price Action : DOW shares are up 3.77% at $43.58 at the last check Monday.

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