Dow signs agreement to acquire Rohm and Haas
Midland, Mich.-based Dow Chemical Company has announced that it has signed a definitive agreement to acquire all ou...
July 14, 2008 by Canadian Plastics
Midland, Mich.-based Dow Chemical Company has announced that it has signed a definitive agreement to acquire all outstanding shares of Rohm and Haas common stock for US$78 per share in cash. The deal is valued at approximately US$15.4 billion.
According to Dow, the transaction makes a decisive move in Dow’s transformation into a earnings growth company with reduced cyclicality. Compounded with Dow’s joint venture the State of Kuwait’s Petrochemical Industries Company, performance products and advanced materials will now represent 69 per cent of Dow’s total sales, compared to 51 per cent prior to the transactions.
“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,” said Dow chairman and CEO Andrew Liveris.
Rohm and Haas is a Philadelphia, Penn.-based Fortune 500 Company that develops specialty and performance materials in more than 100 facilities with operations in 27 countries.
Rohm and Haas provides Dow with an excellent position in industry segments such as electronic materials and coatings, which are poised for significant growth based on long-term market trends. The company also has a strong presence in a number of other areas such as water solutions, adhesives, personal care, biocides, and building and packaging materials.
“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,” said Rohm and Haas chairman and CEO Raj Gupta.
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