TheDow Chemical Company
and theBayer Group
today announced that they have reached agreement for Dow to acquire Bayer’s Wolff Walsrode business group, which is primarily involved in cellulose products.
The transaction is expected to close in the first half of 2007, subject to regulatory approval. Financial terms have not been disclosed.
For Dow, the agreement is said to underscore the company’s commitment to strengthen its performance businesses portfolio.
Wolff Walsrode, with 2005 revenues of more than $400m, will become a part of Dow’s Water Soluble Polymers business.
‘The acquisition will create a $1bn performance business for Dow. We will accelerate growth, ensure long-term supply, and offer a broad portfolio of differentiated solutions by expanding our collective expertise and capabilities,’ said Romeo Kreinberg, Dow’s executive vice president for the Performance Plastics and Chemicals portfolio.
The new business will combine Wolff’s advanced production technology and proficiency in HEMC (Hydroxyethyl Methyl Cellulose) and CMC (Carboxymethyl Cellulose) chemistry with Dow’s HPMC (Hydroxypropyl Methyl Cellulose) product brands and industry expertise.
Cellulose derivatives produced by the combined businesses are used across a range of industry sectors, including construction materials, personal care, pharmaceuticals, food and a number of specialty applications.