The agreement provides that Rohm and Haas Company will retain their Philadelphia headquarters location and continue to do business under the Rohm and Haas name. Additionally, Dow will contribute a number of speciality chemicals business segments to the Rohm and Haas portfolio which have greater synergy with the Philadelphia company’s established strengths.
Commenting on the announcement, Raj L Gupta, Rohm and Haas chairman and CEO, remarked: ‘I have relentlessly talked to our employees, customers and stockholders about the imperative to seek opportunities for transformative change. In its 100-year history, Rohm and Haas has constantly reinvented itself, and this agreement offers outstanding potential to do the same yet again.’
Gupta said: ‘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; have full integration opportunity through the chemical value chain which will allow for reliable and cost competitive raw materials; be a critical component of the new Dow, the world’s preeminent chemical company, which has a stated vision to expand its performance businesses; retain the culture, practices, and stewardship of stakeholder interests that have long been a hallmark of the company’s reputation; and be allied with a vigorous and forward looking US-based enterprise, committed to investing in research for new technology solutions to many of the most pressing societal needs.’
Andrew N Liveris, chairman and CEO of Dow, said: ‘Rohm and Haas will bring to Dow its recognised world-class core strengths in coatings and electronic materials, and a strong market-facing culture. 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 Company in areas such as coatings, biocides, and personal care products. As a result, annual revenue of Rohm and Haas will be approximately $13 billion.
The transaction has been unanimously approved by the boards 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. Haas family trusts, which collectively control approximately 33% of Rohm and Haas outstanding stock, have indicated their support of the agreement.
On behalf of the entire Haas family, Mr John C Haas, 90, expressed unwavering fidelity to Rohm and Haas and their leadership, employees and future. ‘I learned many years ago that there is no substitute for surrounding yourself with good and honest colleagues, and then trusting their wisdom and judgment. We support the agreement reached between Dow and Rohm and Haas; we are particularly proud the company name and Philadelphia location were deemed essential to the merits of this transaction. The value and opportunities this transaction will create are a tribute to its dedicated employees. I will always be available, if needed, to contribute to the success of this new enterprise.’