The Dow Chemical Company and the Bayer Group today announced the closing of Dow’s acquisition of Wolff Walsrode. The purchase price of €540 million includes a cash component and the assumption of financial debt and pension commitments. Following regulatory clearance, payment and share transfers have occurred, and Dow took full ownership of the Wolff Walsrode group of companies on June 30, 2007.
According to a press release, the acquisition will deliver considerable top line synergies for Dow, driven by application expertise and worldwide growth in demand for cellulosics. The acquisition is expected to be financially accretive by the end of the first year of ownership.
“The Wolff transaction marks another important milestone in our company’s drive to expand and enhance our performance business portfolio,” said Andrew Liveris, chairman and CEO, The Dow Chemical Company. “The acquisition of Wolff Walsrode is our latest example of how Dow is delivering on a transformational growth strategy. Wolff is a strategically aligned acquisition that brings new expertise and customer focus to accelerate Dow’s growth in key specialty markets.”
Dow plans to combine Wolff with its water soluble polymers business to create a new specialty business driven to become the preferred development partner and premier application expert in the cellulosics industry. Cellulosics and derivatives are widely used in formulations for personal care, among other, applications. The business will cater to formulators and brand owners whose end product label claims are underpinned by advanced cellulosics.