Dow Chemical of Midland, Mich., yesterday agreed to pay $78 per share in cash plus fees for Rohm and Haas, based in Philadelphia, Pa. Dow predicts annual savings of at least $800 million from increased purchasing power, manufacturing and supply chain improvements, and elimination of redundant overhead and services.
Dow said it will establish an advanced materials business unit at Rohm and Haas current headquarters in Philadelphia and will contribute complementary Dow businesses to Rohm and Haas existing portfolio such as coatings, biocides and personal care. No information is available yet on the impact on either companys lubricant-related businesses.
Andrew Liveris, Dow chairman andchief executive officer,outlined upcoming job cuts during a conference call/webcast Monday about the acquisition with analysts and media.
Liveris said the companies will alsowork to centralize business services and combine existing overlapping office locations. Currently, we estimate 10 to 15 plant closures globally with an additional consolidation ofsix R&D facilities, he added.