Dow To Buy Rohm And Haas Chemicals Business

Under terms of the agreement, Dow AgroSciences will acquire Rohm and Haas' Agricultural Chemicals business, including its fungicide lines, insecticides, herbicides, other product lines, trademarks, and license to all agricultural uses of its biotechnology assets. The transaction is expected to close in the second quarter of 2001, subject to regulatory approvals.

"These product lines complement and enhance Dow AgroSciences' portfolio by adding high-performance, brand name products for specialty crops as well as turf and ornamental businesses around the world," said Charles Fischer, Dow AgroSciences president and chief executive, in a statement. "In addition, this transaction will further boost our global scale and reach, allowing us to better serve our customers in these key high-value businesses."

"The decision to sell our Agricultural Chemicals business was a difficult one, especially considering the long history with our company," said Raj Gupta, Rohm and Haas chairman and CEO. " However, as we continue to reshape our portfolio for the future, it has become increasingly evident that the Agricultural Chemicals business will flourish more as part of a global firm with a stronger presence serving the agricultural markets."

The sale will result in the transfer of ownership of parts of Rohm and Haas' manufacturing sites in Jacarei, Brazil; Barranquilla, Colombia; Lauterbourg, France; and Mozzanica, Italy. All of the Nantong, China, plant will transfer, as well as assets owned by Rohm and Haas in Muscatine, Iowa. The Philadelphia plant's agricultural chemicals operations will become a manufacturing site for Dow AgroSciences.

In 2000, Rohm and Haas agricultural products sales were $531 million. With this acquisition, Dow AgroSciences' annual sales are expected to be about $3 billion annually.

The Dow Chemical Co. is a science and technology company that provides chemical, plastic and agricultural products and services to many consumer markets. For more information visit www.dow.com.

Dow AgroSciences LLC, a wholly-owned subsidiary of The Dow Chemical Co. based in Indianapolis, Ind., is a provider of pest management and biotechnology products. For more information visit www.dowagro.com.

Rohm and Haas technology is found in paints and coatings, adhesives and sealants, household products, personal computers and electronic components, and construction materials. The company has operated an Agricultural Chemicals business for over 70 years. For more information visit www.rohmhass.com.