Dow Reaches Agreement to Close Rohm and Haas Acquisition
- Financing includes substantial equity investments by two major shareholders. -
- Dow becomes the world’s leading specialty chemicals and advanced materials company-
Dow will host a teleconference for investors at
The acquisition creates the world’s leading specialty chemicals and advanced materials company, combining the two organizations’ best-in-class technologies, broad geographic reach and strong industry channels to create an outstanding business portfolio with significant long-term growth opportunities.
“Dow has taken the time and steps necessary to close this transaction on substantially improved financial terms to the company, despite the continuing financial and economic uncertainty facing our world. The strategic benefits of the acquisition of Rohm and Haas have never been in question; just the path to completing the deal,” said Dow Chairman and CEO,
As part of today’s agreement, Rohm and Haas’s two largest shareholders have agreed to purchase
Acquisition Delivers Significant Cost and Revenue Synergy Opportunities
Dow plans to achieve its long-term goals for the Rohm and Haas acquisition with a carefully conceived path forward built upon the cornerstones of financial discipline and operational excellence. Dow has put into place an even more aggressive plan to realize combined synergies of
Finally, as part of the Company’s plans to improve its financial position, Dow has commenced an aggressive asset divestment program involving a number of Dow and Rohm and Haas business units expected to yield approximately
- Dow’s 45 percent stake in Total Raffinaderij Nederland NV (TRN), the Dutch petroleum refining partnership with Total Group. The sale process is underway;
- Some of Dow’s equity stakes in its olefins and derivatives business in
SE Asia. Preliminary discussions with the relevant parties have already begun;
Morton Salt, a division of Rohm and Haas, contingent upon the closing of the proposed acquisition of Rohm and Haas by Dow. Interested parties have submitted bids, and Dow will evaluate these bids as appropriate over the course of the coming weeks to determine timing of the sale process.
Divestments from this program, in addition to the increased equity financing will essentially address the cash shortfall created by the failure of the K-Dow transaction to close as scheduled.
“Rohm and Haas is a strong operational and strategic fit for Dow and is a critical component of the Company’s long-term transformational strategy. This combination brings together the two companies’ best-in-class products and technologies, broad geographic reach, and well-developed channels to market. As a combined entity, we will form a world-class platform with significant long-term growth potential, said Liveris. Additionally, we are a strong company with a history of strong operating performance and a passionate commitment to our shareholders.”
With annual sales of
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Webcast and Conference Call Information
Dow will host a call with investors and securities analysts today at
The call will last 60 minutes.
Connection information is as follows:
Listen-only dial-in information: +1 (719) 457-0700
Pass code: 801071
SOURCE The Dow Chemical Company