Dow Completes Acquisition of Rohm and Haas, Creating a Leading Global Specialty Chemicals and Advanced Materials Company
01 Abril 2009 - 11:21AM
PR Newswire (US)
MIDLAND, Mich., April 1 /PRNewswire-FirstCall/ -- The Dow Chemical
Company (NYSE:DOW) today announced that it has completed its
acquisition of Rohm and Haas (NYSE:ROH). The acquisition is a major
step in Dow's strategy of growing its performance products and
specialty portfolio to deliver more consistent earnings growth.
Combining the two organizations' best-in-class technologies, broad
geographic reach and strong market channels will create a $14.0
billion diversified business portfolio, which will be called Dow's
Advanced Materials division. The division is intended to achieve
$3.0 billion in additional value growth opportunities, as well as
annual cost synergies of $1.3 billion. "The closing of this
transaction strongly positions Dow for the future by transforming
our business portfolio," said Dow Chairman and CEO, Andrew N.
Liveris. "This is an exciting day for all of Dow's stakeholders,
and we are committed to delivering on a clear and measurable plan
designed to meet the needs of our investors, employees, customers
and suppliers, even in this current challenging macroeconomic
environment. Our first critical task is to ensure a seamless
integration of Rohm and Haas that maximizes the synergies and
opportunities offered by this transaction." 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 $500
million investment in Dow equity. This is consistent with Dow's
disciplined plan to retire the bridge loan for the financing of the
Rohm and Haas transaction by the end of 2009. This will be
accomplished through the sale of assets, issuance of equity and
debt, and the previously announced reduction in the Company's
dividend to preserve cash. Regulatory Approvals On January 23,
2009, Dow entered into a consent order with the United States
Federal Trade Commission (FTC) that permitted the completion of the
acquisition, provided that certain actions to address potential
anticompetitive effects are implemented within 240 days of the deal
closing. Specifically, under the terms of that agreement, Dow is
required to divest the following businesses: -- 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 America -- 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 January 8, 2009. Effective today, Rohm and
Haas common stock will cease trading. About Dow With annual sales
of $58 billion and 46,000 employees worldwide, Dow is a diversified
chemical company that combines the power of science and technology
with the "Human Element" to constantly improve what is essential to
human progress. The Company delivers a broad range of products and
services to customers in around 160 countries, connecting chemistry
and innovation with the principles of sustainability to help
provide everything from fresh water, food and pharmaceuticals to
paints, packaging and personal care products. References to "Dow"
or the "Company" mean The Dow Chemical Company and its consolidated
subsidiaries unless otherwise expressly noted. DATASOURCE: The Dow
Chemical Company CONTACT: David Winder, +1-989-636-0626, , Bob
Plishka, 800-636-1463, Web Site: http://www.dow.com/
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