At 7:02 am this morning, Rohm and Haas announced it has sold its business to chemical giant Dow Chemical ; the sale includes Morton Salt. Rohm and Haas chairman and CEO Raj Gupta said combining the companies offered "transformative" potential. Dow chairman and CEO Andrew Liveris used the same word, "transformative," in Dow's release.
Each company has a spate of specialty businesses. The combination makes Dow "the world's preeminent chemical business," said Gupta. Dow will continue to operate Rohm and Haas as a separate unit and, in fact, transfer some of its exisitng speciality chemical businesses under the Rohm and Haas structure. Rohm and Haas will continue to operate its Philadelphia headquarters.
Dow offered $78 a share for the acquisition. Rohm and Haas closed yesterday at $44.83 in weak trading. Its 52-week high was $62.68.
Salt Institute president Richard L. Hanneman noted that Dow Chemical started its business as a salt-based chemical company in Midland, MI, where it is still headquartered. "Most people are surprised to learn that the single largest use of salt isn't to prepare our foods or keep our winter roads safe, but as the feedstock to the world's chlor-alkali industry, the same as petroleum is the feedstock to the petrochemical industry. "Chlorine chemistry touches every aspect of our lives," Hanneman explained.
