Strategic Alliance Between Dow Chemical and Riverside Group Drives Growth in Web-Enabled Business Solutions

Dow Chemical Company (NYSE: DOW) has entered into a strategic alliance with Buildscape, Inc., a subsidiary of Riverside Group, Inc., to drive the growth of web-enabled business solutions for the global residential and light commercial building and construction industry. As a result, Riverside will retain a 35% investment in Buildscape, and Dow will own slightly less than 50%. The investment is expected to combine Dow's significant global resources with Buildscape's web-based technology, enabling an open marketplace for building material suppliers and providing builders with faster and more effective materials procurement.

Key Takeaways:

• The strategic alliance between Dow Chemical and Riverside Group aims to drive growth in web-enabled business solutions for the building and construction industry.
• Riverside will retain a 35% investment in Buildscape, and Dow will own slightly less than 50% as a result of the series of transactions.
• Buildscape, an Internet-based business-to-business marketer of building materials, delivers building products and services to homebuilding professionals through www.buildscapepro.com.
• Riverside has domain expertise and a network of e-commerce capabilities in the building materials industry, with subsidiaries such as Wickes, Inc. and Cybermax, Inc.
• The investment by Dow is expected to rapidly expand Buildscape's functionality and broaden its service offerings to all major U.S. construction markets over the next few months, with global expansion to occur thereafter.
• The alliance further evidences the transition taking place at Riverside Group, Inc., with a focus on e-commerce-based supply and distribution of building materials.
• Riverside's subsidiaries include Wickes, Inc., a leading distributor of building materials and manufacturer of value-added building components, and Greenleaf Technologies, a company in which Riverside holds a 13% ownership.

Statistics:

• Dow Chemical Company has annual sales of $19 billion, serving 162 countries and a wide range of markets vital to human progress.
• Riverside Group, Inc. is a holding company engaged in traditional and e-commerce-based supply and distribution of building materials, with subsidiaries such as Buildscape, Wickes, Inc., and Cybermax, Inc.
• Wickes Inc. has annual sales of over $1 billion, operating more than 100 building centers in 24 states in the Midwest, Northeast, and South.
• Buildscape delivers building products and services to homebuilding professionals through its online platform, www.buildscapepro.com.
• The investment by Dow is expected to drive growth in web-enabled business solutions for the global residential and light commercial building and construction industry.

Sources:

• Riverside Group, Inc., press release, "Riverside Group, Inc. Announces Strategic Alliance with Dow Chemical Company to Drive Growth in Web-Enabled Business Solutions"
• Dow Chemical Company, press release, "Dow Chemical Company Announces Strategic Alliance with Buildscape, Inc. to Drive Growth in Web-Enabled Business Solutions"
• Buildscape, Inc., press release, "Buildscape, Inc. Announces Strategic Alliance with Dow Chemical Company to Drive Growth in Web-Enabled Business Solutions"
• Securities and Exchange Commission, Form 10K and Form 10Q filings for Riverside Group, Inc.