Dow Chemical is selling its Styron Division to private equity firm Bain Capital for $1.63 billion.

As part of the deal, Dow said Tuesday it has an option to receive up to 15 percent of the equity of Styron as part of the sale consideration.

The companies are expecting the deal to close by August, pending regulatory approvals and closing conditions.

Dow, based in Midland, Mich., first announced its plan to form Styron and explore sale options in July 2009. The Styon unit makes plastics, rubber and latex.