MIDLAND, Mich. ( TheStreet) -- Dow Chemical ( DOW) reached an agreement to sell its Styron division to an affiliate of Bain Capital for $1.63 billion.

The move comes as Dow continues to focus on offloading its debt.

The Dow business makes rubber, latex and polystyrene.

Dow said under the sale agreement it has an option to receive up to 15% of the equity of Styron. Additionally, the transaction includes several long-term supply, service and purchase agreements valued up to $400 million.

The sale is expected to close by August.

Reports last week said private-equity firm TPG was the leading candidate for Styron, which Dow put up for sale in July.

Dow shares rose 19 cents Tuesday to $28.88.

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