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Dow Completes Acquisition of Rohm and Haas



Published April 1, 2009
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The Dow Chemical Company completed its acquisition of Rohm and Haas.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 billion diversified business portfolio, which will be called Dow’s Advanced Materials division.The division is intended to achieve $3 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.

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.

In addition, The Dow Chemical Company announced that Rohm and Haas entered into a definitive agreement to sell the stock of Morton International, Inc., the salt business of Rohm and Haas, to K+S Aktiengesellschaft.K+S is one of the world's leading suppliers of specialty and standard fertilizers, plant care and salt products, and a German DAX 30 Company.

"We are pleased that we reached an agreement with K+S at an attractive value in such a short period of time," said Liveris. “This sale puts us ahead of schedule on our de-leveraging plan post the close of the Rohm and Haas acquisition.It is the first of many steps designed to deliver on our clear and measurable plan to build value for our shareholders.”


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