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Dow to Buy Rohm and Haas

Posted: July 10, 2008

Dow Chemical Co. agreed to buy Rohm and Haas Co. for $15.3 billion. Dow, reportedly, is broadening its product offerings in higher margin markets, and plans to establish an advanced materials business unit at Rohm and Haas' Philadelphia headquarters while contributing some Dow businesses to Rohm and Haas' existing portfolio—including personal care. The total revenue of a new unit is expected to approach $13 billion.

The all-cash deal for $78 per share is a 74% premium compared to Rohm and Haas Co's closing price of $44.83 per share on July 9 on the New York Stock Exchange. The deal would be valued at $18.8 billion; however, Rohm & Haas has a debt of $3.5 billion. 

With this acquisition, according to a release, Dow boosts its presence across a wide range of specialty markets and positions itself to withstand industry downturns.