Dow and Reichhold Announce FTC Clearance for Specialty Latex JV and Dow's Acquisition of Reichhold's Paper Business
The Dow Chemical Company and Reichhold, Inc. announced today that the U.S. Federal Trade Commission (FTC) has terminated the waiting period, allowing the two companies to form Dow Reichhold Specialty latex LLC, a specialty latex joint venture. As part of this transaction, the FTC also cleared Dow's acquisition of Reichhold's carpet and paper latex businesses. Terms of the transactions will not be disclosed.
The joint venture will have access to a broad range of latex chemistries from both companies. These products are used in a wide range of end use applications, including latex gloves, textile printing and construction applications. The joint venture will employ 400 people and have sales, marketing and research support in North America, Latin America, Europe and the Pacific.
"The formation of Dow Reichhold Specialty Latex LLC will accelerate growth of our combined specialty latex businesses on a global scale," said Ted Cosse, global vice president of Dow's Emulsion Polymers business. "More importantly, the combined products, technologies and global presence of the new company will create a culture and a capability that is better able to meet the unique needs of specialty latex customers around the world."
Yoshi Kawashima, chairman and CEO of Reichhold, said the joint venture would offer its customers a wider portfolio of products and services than previously available by Reichhold.
"The new company is an attractive blend of the best resources of each company in the area of specialty latex," Kawashima said. "Plus, it allows Reichhold the opportunity to focus our energies on globalization and our core products while giving specialty latex the chance to grow and provide new and better solutions to those market segments."
Jeff Welker, former senior director of corporate planning for Reichhold, will be named president of the joint venture. "With the resources of our parent companies, we expect Dow Reichhold Specialty Latex LLC to become a leading producer of synthetic emulsions for specialty applications," said Welker. "We will be able to deliver added value to our customers because of our world class technology, experience in specialty emulsions and global resources."
Upon completion of the transaction, the joint venture will be headquartered in Research Triangle Park, North Carolina, and will operate two latex production facilities in Cheswold, Delaware, and Chickamauga, Georgia. The joint venture will also have access to Dow's extensive global manufacturing network. New facilities are already being planned to service fast growing markets in the Pacific.
Regarding the acquisition of Reichhold's carpet and paper latex businesses, Cosse added, "We look forward to acquiring the unique technologies, products and services of Reichhold that will allow Dow to expand into new carpet and paper latex market segments."
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