Dow Chemical completes $725mn purchase of Bayer unit

07/02/07 - newratings.com

NEW YORK, July 2 (newratings.com) – Dow Chemical Co (DOW) Monday announced that it had completed its $725 million (€540 million) acquisition Wolff Walsrode from Germany’s Bayer AG (BAY).

Bayer plans to use the sale proceeds to reduce its debt burden. Dow Chemical said it will merge Wolff Walsrode, which develops and manufactures a variety of products based on cellulose, with its Water Soluble Polymers business to create a new specialty business. Dow Chemical expects the acquisition to result in significant revenue synergies and to be financially accretive by the end of the first year of completion of the deal.