PHILADELPHIA, PA -- Dow Chemical Company to acquire all of the outstanding shares of Rohm and Haas common stock for $78 per share in cash. The transaction is valued between $15.3 and $18.8 billion by sources.

The  all cash deal provides that the Rohm and Haas Company will retain its Philadelphia Headquarters location, and continue to do business under the Rohm and Haas name. Further, Dow will contribute a number of specialty chemicals business segments to the Rohm and Haas portfolio that have greater synergy with the Philadelphia Company’s established strengths.

The $78 per share price represents a 74% premium to Philadelphia-based Rohm and Haas's closing share price of $44.83 on Wednesday. The price is also 24% higher than the stock's all-time high reached a year ago.
 
Commenting on the announcement, Raj L. Gupta, Rohm and Haas Chairman and Chief Executive Officer, remarked: “I have relentlessly talked to our employees, customers and stockholders about the imperative to seek opportunities for transformative change. In its 100-year history, Rohm and Haas has constantly reinvented itself, and this agreement offers outstanding potential to do the same yet again.” 

Dow Chemical looks for the acquisition to add to earnings in the second year. Annual cost savings are expected to be $800 million. Improved purchasing power for raw materials, an improved supply chain, and a streamlined corporate overhead will contribute to the savings.