Dow is to acquire adhesives specialist Rohm and Haas for an undisclosed sum. The transaction, which has been unanimously approved by the directors of both companies, remains subject to approval by Rohm and Haas shareholders, customary conditions and regulatory approvals. Completion of the transaction is expected by early 2009.
Dow chairman and CEO Andrew N Liveris comments: “The acquisition of Rohm and Haas is a defining step in our transformational strategy to shape the “Dow of Tomorrow” – a high value, diversified chemicals and materials company, creating the largest specialty chemicals company in the United States with a leading global position in performance products and advanced materials.
“The addition of Rohm and Haas’ portfolio enables us to accelerate the growth of our Performance business portfolio and affords us a strong position in the global speciality chemicals and advanced materials sectors. It brings us access to new and exciting technologies and offers an extended reach into emerging geographies, all of which are highly complementary to Dow’s existing platforms and value growth priorities.”
Rohm and Haas chairman and CEO Raj L Gupta adds: “We believe that by becoming a part of Dow, we secure a brighter future and greater growth prospects for our employees, consistent with the vision of our founders to remain a high-quality supplier of innovative technology and solutions.”
Dow will establish an advanced materials business unit at Rohm and Haas’ current headquarters in Philadelphia and intends to contribute complementary Dow businesses to the company’s existing portfolio, such as coatings, biocides and personal care. The total revenue of this new unit will approach $13 bn.
Dow will retain Rohm and Haas’ corporate name for this advanced materials business unit and two Rohm and Haas directors will join the Dow board.
