The
Dow Chemical Company and Rohm and
Haas Company announced today they have reached agreement for
Dow AgroSciences LLC, a wholly
owned subsidiary of
Dow, to purchase Rohm and Haas’s Agricultural
chemicals business, including
working capital, for approximately US $1 billion.
Under terms of the agreement,
Dow AgroSciences will acquire Rohm and Haas’s Agricultural Chemicals
business, including its well-recognized fungicide lines,
insecticides,
herbicides, other product lines,
trademarks, and license to all agricultural uses of its
biotechnology assets. The transaction is expected to
close in second quarter 2001, subject to regulatory
approvals.
According to A. Charles Fischer, President and CEO of Dow AgroSciences, "We are delighted with the
proposed acquisition of the
Rohm and Haas agricultural business, which includes its prominent fungicide
lines,
insecticides, and
herbicides. These product lines complement and enhance Dow AgroSciences’
portfolio by adding high-performance, brand name products for specialty
crops as well as turf and
ornamental businesses around the world. In addition, this transaction will further boost our global scale
and reach, allowing us to better serve our customers in these key high value businesses."
"The decision to sell our Agricultural Chemicals business was a difficult one, especially considering the
long history with our company," said Raj Gupta, Rohm and Haas Company’s Chairman and CEO. "The
business has a premier reputation in the market and has contributed substantially to the success of the
company for some 70 years. However, as we continue to reshape our portfolio for the future, it has
become increasingly evident that the Agricultural Chemicals business will flourish more as part of a global
firm with a stronger presence serving the agricultural markets. Dow AgroSciences is among the world
leaders in the
crop protection business. They have the experience, the know-how, and the resources to
ensure the continued vitality of this business as part of its presence in the marketplace."
The sale will result in the transfer of ownership of parts of Rohm and Haas’ manufacturing sites in Jacarei,
Brazil; Barranquilla,
Colombia; Lauterbourg,
France, and Mozzanica,
Italy; all of the Nantong,
China
plant will transfer, as well as assets owned by Rohm and Haas in Muscatine, Iowa. The Philadelphia, PA,
plant’s Agricultural Chemicals operations will become a
toll manufacturing site for Dow AgroSciences.
In 2000, Rohm and Haas Ag products
sales were US $531 million. With this acquisition, Dow
AgroSciences’ annual sales are expected to be approximately US $3 billion annually.
According to Fischer, this agreement continues to advance Dow AgroSciences’ strategy of value-added
growth through
mergers,
acquisitions, alliances and internal R&D capabilities.