Rohm and Haas Company (NYSE:ROH) today said it has signed an
agreement to acquire the FINNDISP division of OY Forcit AB, a Finnish
paint emulsions operation, for approximately EUR 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 EUR 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 Sjoblom, 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 EUR 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.
Visit www.rohmhaas.com for more information.
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.
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