NewsDow Acquires Wolff Walsrode from Bayer
07/02/07 - PRNewswire
MIDLAND, Michigan and LEVERKUSEN, Germany, July 2 /PRNewswire/ --
- Dow Secures Application Expertise and Broader Cellulosics Offering for
End-use Segments
The Dow Chemical Company and the Bayer Group today announced the closing of
Dow's acquisition of Wolff Walsrode. The purchase price of EUR 540 million
(approximately USD 725 million) includes a cash component and the assumption
of financial debt and pension commitments. Following regulatory clearance
from various authorities around the world, payment and share transfers have
occurred, and Dow has taken full ownership of the Wolff Walsrode group of
companies on June 30, 2007.
The acquisition will deliver considerable top line synergies for Dow,
driven by application expertise and worldwide growth in demand for
cellulosics. The acquisition is expected to be financially accretive by the
end of the first year of ownership.
"The Wolff transaction marks another important milestone in our Company's
drive to expand and enhance our performance business portfolio," said Andrew
Liveris, chairman and CEO of The Dow Chemical Company. "The acquisition of
Wolff Walsrode is our latest example of how Dow is delivering on a
transformational growth strategy. Wolff is a strategically aligned
acquisition that brings new expertise and customer focus to accelerate Dow's
growth in key specialty markets."
For Bayer, the transaction fits with its objectives of securing a
recognized buyer committed to further develop the Wolff Walsrode business.
"With The Dow Chemical Company we found a buyer that offers promising
perspectives for the future of Wolff," said Bayer management board chairman
Werner Wenning. The cash inflows of approximately EUR 440 million (~USD 590
million) are intended to be used to reduce Bayer's net debt.
Dow plans to combine Wolff with its Water Soluble Polymers business to
create a new specialty business driven to become the preferred development
partner and premier application expert in the cellulosics industry.
Cellulosics and derivatives are widely used in formulations for food,
personal care, pharmaceuticals, construction, paint and a variety of
specialty industrial applications. The business will cater to formulators and
brand owners whose end product label claims are underpinned by advanced
cellulosics.
About Dow
Dow is a diversified chemical company that harnesses the power of
innovation, science and technology to constantly improve what is essential to
human progress. The Company offers a broad range of products and services to
customers in more than 175 countries, helping them to provide everything from
fresh water, food and pharmaceuticals to paints, packaging and personal care
products. Built on a commitment to its principles of sustainability, Dow has
annual sales of US$49 billion and employs 43,000 people worldwide. References
to "Dow" or the "Company" mean The Dow Chemical Company and its consolidated
subsidiaries unless otherwise expressly noted. More information about Dow can
be found at http://www.dow.com.
Bayer: Science For A Better Life
Bayer is a global enterprise with core competencies in the fields of
health care, nutrition and high-tech materials. The company's products and
services are designed to benefit people and improve their quality of life. At
the same time Bayer creates value through innovation, growth and improved
earning power. The Group is committed to the principles of sustainable
development and acknowledges and accepts its role as a socially and ethically
responsible "corporate citizen". Economy, ecology and social responsibility
are corporate policy objectives of equal rank. In fiscal 2006, Bayer employed
106,000 people and had sales of around euro 29 billion. Capital expenditures
amounted to euro 1.7 billion, the R&D budget to euro 2.3 billion. More
information is available on the Internet at http://www.bayer.com.
Forward-Looking Statements from Dow
The forward-looking statements contained in this document involve risks
and uncertainties that may affect The Dow Chemical Company's operations,
markets, products, services, prices and other factors as discussed in filings
with the Securities and Exchange Commission. These risks and uncertainties
include, but are not limited to, economic, competitive, legal, governmental
and technological factors. Accordingly, there is no assurance that the Dow's
expectations will be realized. Dow assumes no obligation to provide revisions
to any forward-looking statements should circumstances change, except as
otherwise required by securities and other applicable laws.
Forward-Looking Statements from Bayer
This news release contains forward-looking statements based on current
assumptions and forecasts made by Bayer Group management. Various known and
unknown risks, uncertainties and other factors could lead to material
differences between the actual future results, financial situation,
development or performance of the company and the estimates given here. These
factors include those discussed in our public reports filed with the
Frankfurt Stock Exchange and with the U.S. Securities and Exchange Commission
(including our Form 20-F). The company assumes no liability whatsoever to
update these forward-looking statements or to conform them to future events
or developments.
Web site: http://www.dow.com
http://www.bayer.com