W.R. Grace (NYSE:GRA) will soon be one asset larger. It has reached agreement with Dow Chemical (NYSE:DOW) to buy that company's UNIPOL polypropylene licensing and catalysts business, both firms announced in separate press releases. The price is $500 million in cash.

In the press release revealing the news, W.R. Grace touted the complementary nature of its purchase. The firm quoted its CEO Fred Festa as saying that "the addition of Dow's world-class polypropylene products and process technology is a significant enhancement of Grace's market-leading catalysts franchise."

The acquisition is expected to close by the end of this year. It is subject to approval from the relevant regulators.

At the end of its most recently reported quarter, W.R. Grace had just over $1.1 billion in cash and equivalents.

Dow Chemical said it expects to book a gain on the sale. In its press release, it wrote that the net proceeds of the transaction "will be directed toward the Company's main priorities of remunerating shareholders, debt reduction and funding growth."

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