Dow buys Bayer’s Wolff Walsrode for €540m

02 July 2007 09:44  [Source: ICIS news]

MUMBAI (ICIS news)--Dow Chemical said on Monday that it has acquired Wolff Walsrode from Bayer for €540m ($729m), which includes a cash component and the assumption of financial debt and pension commitments.

Dow plans to combine Wolff with its water soluble polymers business to create a $1bn speciality business, Dow Wolff Cellulosics, driven by application expertise and worldwide growth in demand for cellulosics, it said.

"Wolff is a strategically aligned acquisition that brings new expertise and customer focus to accelerate Dow’s growth in key speciality markets," said Dow chairman and CEO Andrew Liveris.

The company expects the acquisition to add financial value by the end of the first year of ownership.

"The cash inflows of approximately €440m would be used to reduce Bayer’s net debt," said Bayer chairman Werner Wenning.

Cellulosics and derivatives are widely used in formulations for food, personal care, pharmaceuticals, construction, paints and a variety of specialty industrial applications.

The European Commission approved Dow's plan to buy Wolff Walsrode on 20 June.

($1 = €0.74)

By: Divya Chowdhury
+65 6780 4359

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