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Rohm and Haas to Acquire Polymer Dispersions Division of OY Forcit AB

Published on 2008-01-16. Author : SpecialChem

PHILADELPHIA -- Rohm and Haas Company said that it has signed an agreement to acquire the FINNDISP division of OY Forcit AB, a Finnish paint emulsions operation, for approximately €60 million (approximately US$85 million). Based in Hanko, Finland, this division of Forcit makes water-based emulsions used in the manufacture of paints and coatings, lacquers and adhesives in Northern Europe and the Commonwealth of Independent States (former Soviet Union). Rohm and Haas expects to complete the transaction by the end of the first quarter of 2008.

"This acquisition clearly demonstrates our commitment to the region and our desire to expand quickly in this marketplace," says Luis Fernandez, Vice President and Group Business Director for the company's €1.4 billion (US$2 billion) Paint and Coatings Materials business. "FINNDISP strengthens our commitment to this important geographic region. Their technology expands our ability to bring a portfolio of low-temperature, high performance products to market very quickly," he adds. "We will use this technology to grow our portfolio of products for rapidly developing regions around the world." Fernandez explained that the acquisition also brings two manufacturing sites - an existing facility in Hanko, and a plant currently under construction near Moscow, Russia, and expected to be completed in March 2008. These will become a part of a network of more than 30 plants worldwide that provide consistently high quality products tailored to meet local and regional needs.

"This is an excellent opportunity for us. Rohm and Haas is in a great position to support and develop the dispersion business both in Hanko and in Russia. Thanks to our location, we are ideally positioned in terms of Rohm and Haas's Russian business, which will mean more investments in dispersions. The sale will also give us new resources for developing our explosives business," says Mr Ulf Sjöblom, Managing Director of Forcit.

Fernandez has high praise for Forcit and its business culture. "This company is very successful, with very good leadership," he says. "They have performed very well in their home market. Forcit also has had the foresight to focus on customers in rapidly developing economies, and to continually bring them products that are just right for their marketplace," he says. "In addition, Forcit has a culture very similar to that of our own - one focused on continually delivering quality products in a manner that is safe for the workforce and least intrusive on the environment."

Rohm and Haas said it expects to complete the transaction after obtaining all appropriate regulatory approvals. Fernandez concludes, "This acquisition is a solid, firm and positive step forward toward helping Rohm and Haas achieve its Vision 2010 goals. We expect the FINNDISP division to contribute sales in the range of €40-50 million in 2008." In November, Rohm and Haas outlined extensive plans to increase sales to more than $11 billion, in part through a sharper focus on its Paint and Coatings Materials business. Additional details were not disclosed.

About Rohm and Haas Company:

Leading the way since 1909, Rohm and Haas is a global pioneer in the creation and development of innovative technologies and solutions for the specialty materials industry. The company's technologies are found in a wide range of industries including: Building and Construction, Electronics and Electronic Devices, Household Goods and Personal Care, Packaging and Paper, Transportation, Pharmaceutical and Medical, Water, Food and Food Related, and Industrial Process. Innovative Rohm and Haas technologies and solutions help to improve life everyday, around the world. Based in Philadelphia, PA, the company generated annual sales of approximately $8.2 billion in 2006.

The company's Paint and Coatings Materials business is the world's leading supplier of materials used by the global coatings industry; no competitor can offer this range of technology, along with the capability to provide customized products in all four regions. It includes acrylic emulsion binders and additives for decorative architectural paints used by do-it-yourself consumers and professional contractors. Industrial materials serve as the foundation for industrial coatings, caulks and sealants, home insulation and floor care products.

About OY Forcit AB:

Forcit is Finland's leading manufacturer of explosives and polymer dispersions as well as a provider of consultancy and training in the field. Forcit's total turnover in 2006 amounted to 72 million euros, of which exports accounted for around 39%. The Group comprises Oy Finnrock Ab, OOO Finndisp, and Frans Lundelin Oy. The Group employs a total of around 270 people.

Source: Rohm and Haas


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