The Dow Chemical Co., Midland, Mich., and Philadelphia-based Rohm and Haas Co., a supplier of
solutions for the specialty materials industry, have reached an agreement under which Dow will
acquire Rohm and Haas for $18.8 billion.
The transaction follows a recent joint venture with Kuwait-based Petrochemicals Industries
Co. As a result of the two transactions, 69 percent of Dow’s total sales revenues will come from
sales of performance products and advanced materials.
“The acquisition of Rohm and Haas is a defining step in our transformational strategy
to shape the ‘Dow of Tomorrow’ — a high value, diversified chemicals and materials company,
creating the largest specialty chemicals company in the United States with a leading global
position in performance products and advanced materials,” said Andrew N. Liveris, Dow chairman and
CEO. “Rohm and Haas brings us access to new and exciting technologies and offers an extended reach
into emerging geographies, all of which are highly complementary to Dow’s existing platforms and
value growth priorities.
Rohm and Haas’ current Philadelphia headquarters will become the headquarters of Dow’s newly
established advanced materials business unit, which will retain Rohm and Haas’ corporate name and
will include Rohm and Haas’ existing portfolio and complementary Dow businesses. In addition, Dow
will add two Rohm and Haas directors to its Board of Directors.
“Rohm and Haas is a first class company with a strong product portfolio, proven research and
development capabilities and a highly talented workforce,” Liveris said. “This acquisition affords
us a tremendous opportunity to ensure the new Dow draws from the strengths of each of the two
companies, capturing the best practices and best people from each organization as we pursue our
vision of becoming the largest, most profitable and most respected chemical company in the world.”
Both Dow’s and Rohm and Haas’ Boards of Directors have approved the transaction, which the
companies hope to complete by early 2009.
July 15, 2008