Dow to acquire Rohm and Haas

The deal cements Dow's position as a chemical powerhouse. Rohm and Haas is expected to retain its name and headquarters in Philadelphia, Pa.

Chemical suppliers Dow (Midland, Mich.) and Rohm and Haas (Philadelphia, Pa.) announced on July 10 a definitive agreement under which Dow will acquire all outstanding shares of Rohm and Haas common stock for $78 per share in cash. This acquisition follows the December 2007 announcement of a Dow joint venture with Petrochemical Industries Company of the State of Kuwait (PIC).  With the collective impact of these two deals, performance products and advanced materials will represent 69 percent of Dow’s total sales, on a 2007 pro forma basis, compared with 51 percent prior to these transactions. Rohm and Haas is expected to retain its name and headquarters in Philadelphia.

Andrew N. Liveris, Dow chairman and CEO, commented: “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.

“After an extensive analysis of acquisition opportunities in the marketplace, it became clear that Rohm and Haas is the ideal company to accelerate Dow’s transformation. The addition of Rohm and Haas’ portfolio is game-changing for Dow, enabling us to accelerate the growth of our Performance business portfolio and affording us a strong position in the global specialty chemicals and advanced materials sectors.  Rohm and Haas 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 stated, “When this transaction is completed, Rohm and Haas will be a critical component of the New Dow, the world’s preeminent chemical company and will be aligned with a forward-looking US-based enterprise, committed to investing in research for new technology solutions to many of the most pressing societal needs.  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.”

Information: Dow, www.dow.com; Rohm and Haas, www.rohmhaas.com.