The Dow 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' Agricultural Chemicals business, including working capital, for about $1 billion.
Dow will acquire Rohm and Haas' Ag Chemicals business, including its fungicide lines, insecticides, herbicides and other product lines, trademarks, and license to all agricultural uses of its biotechnology assets.
The transaction is expected to close in the second quarter, subject to regulatory approval.
The buy out of Rohm and Haas' lines will enhance Dow AgroSciences' portfolio. It will add high-performance, brand name products for specialty crops as well as turf and ornamental businesses around the world.
Raj Gupta, Rohm and Haas Company's chairman and CEO, said the decision to sell its ag chemicals business was a difficult one. "The business has a premier reputation.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 ag chemicals business will flourish more as part of a global firm with a stronger presence serving the ag markets."
Dow has annual sales of $28 billion and does business in 170 countries. Rohm and Haas, with heavy interest in paints and coatings, adhesives and sealants, household products, personal computers, electronic components and constructions materials has annual sales of about $7 billion.