Rohm and Haas Company has entered into an agreement with the Dow Chemical Company, under which Dow will acquire all of the outstanding shares of Rohm and Haas common stock for $78 per share in cash or more than $15 billion.
Under the terms of agreement, Rohm and Haas will retain its Philadelphia headquarters location, and continue to do business under the Rohm and Haas name. Additionally, Dow will contribute a number of specialty chemicals business segments to the Rohm and Haas portfolio.
“I have relentlessly talked to our employees, customers and stockholders about the imperative to seek opportunities for transformative change,” said Raj L. Gupta, chairman and CEO of Rohm and Haas. “In its 100-year history, Rohm and Haas has constantly reinvented itself, and this agreement offers outstanding potential to do the same yet again.”
According to Mr. Gupta, when the transaction is completed, Rohm and Haas will have a broader and more global leadership position in a range of specialty chemicals and materials business segments and have full integration opportunity through the chemical value chain which will allow for reliable and cost competitive raw materials.
“Rohm and Haas will bring Dow its recognized world-class core strengths in coaitng and electronic materials, and a strong market-facing culture,” said Andrew N. Liveris, chairman and CEO of Dow. “This acquisition is the definitive step in our company’s strategy to shape The Dow of Tomorrow.”
Dow will contribute complementary businesses to Rohm and Haas in areas such as coatings, biocides and personal care products. As a result, annual revenue of Rohm and Haas is expected to be approximately $13 billion. The transaction has been unanimously approved by the board of directors of both companies, and remains subject to approval by the shareholders of Rohm and Haas, as well as customary conditions and approval of appropriate regulatory authorities.