Dow Completes Acquisition of Rohm and Haas, Creating a Leading Global Specialty Chemicals and Advanced Materials Company
“The closing of this transaction strongly positions Dow for the future by transforming our business portfolio,” said Dow Chairman and CEO,
Rohm and Haas is the key element in Dow’s new Advanced Materials division. Pierre Brondeau has been named president and CEO of this division, which includes: Coatings, Building and Construction, Specialty Materials, Adhesives and Functional Polymers, and Electronic Materials.
Transaction Delivers on Announcement Day Promises
We expect the creation of Dow’s new Advanced Materials division will:
- Deliver significant cost and revenue synergies: Based on work that has been ongoing since
July 2008, Dow has increased its annual cost synergy estimates to $1.3 billion, capitalizing on additional expected cost savings in the areas of combined purchasing and centralized business services.
- Leverage Rohm and Haas’s strengths and drive growth for the combined company: Dow’s Advanced Materials division will provide deeper geographic reach, increased channels to market, and complementary technologies. In addition, the combined company will have one of the largest research and development programs in the chemical industry.
- Enable Dow’s transformation into an earnings growth company: By expanding its specialty chemicals and advanced materials businesses, Dow has shifted the balance of its portfolio to this higher growth, higher margin area. The Advanced Materials division is strongly positioned in more resilient markets, as well as businesses that are poised for growth in the economic upturn, including coatings, adhesives and electronics.
Continued Progress on De-leveraging
Dow has decided to exercise its option to have the Haas Family Trusts make an additional
- Clear Lake,
Texas, acrylic acid and esters plant and the related glacial acrylic acid, butyl acrylate, and ethyl acrylate businesses in North, Central, and South America
- UCAR Emulsion Systems specialty latex businesses in
- North American hollow plastic pigment business (also referred to as the hollow sphere particle business)
The consent order also includes an Order to Hold Separate which requires Dow to maintain the competitiveness of these businesses pending their divestiture and to ensure that confidential information is not transferred between these businesses and the other businesses of Dow.
Dow has already initiated procedures to comply with the FTC consent order and has been actively seeking buyers for the impacted businesses. The acquisition previously received regulatory clearance from the European Commission on
Effective today, Rohm and Haas common stock will cease trading.
With annual sales of
SOURCE The Dow Chemical Company