Dow AgroSciences LLC purchases agrichemical unit from Rohm and Haas

On March 8, 2001, Dow AgroSciences LLC announced plans to purchase the agricultural-chemical business unit of Rohm and Haas. The deal, worth nearly $1 billion, will result in the transfer of ownership of some of Rohm and Haas’ manufacturing facilities in South America, Europe, China and the United States. Also, Dow Agrosciences will acquire Rohm and Haas’ fungicide, insecticide and herbicide product lines. The deal will also include some specialty products, trademarks and biotechnology assets. Last year, sales in the agricultural unit contributed $531 million to Rohm and Haas revenue. With the new unit, Dow Agrosicences expect sales to approach $3 billion annually. 

The acquisition is expected to enhance Dow AgroSciences’ position in the agrichemicals market by adding several well-known brand names to their worldwide turf and ornamental markets. Although the agrichemicals unit has performed well and contributed to the company for 70 years, Rohm and Haas feels that its agricultural unit will be better situated as part of a large, worldwide agricultural company.

This acquisition continues the trend of operating agrichemical businesses separately from other chemical units. The agrichemical company, Dow AgroSciences LLC, is now operated separately from the Dow Chemical Company. In November 2000 the agrichemical businesses of Zeneca and Novartis were spun off in the creation of Syngenta. Now, Rohm and Haas, a producer whose technology is found in plastics, paints, coatings, adhesives, computers, electronics and construction materials, is divesting its interest in the agrichemicals business.

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