Dow AgroSciences has agreed to buy the agricultural chemical business of Philadelphia-based Rohm and Haas Co. for $1 billion, including working capital.
The deal adds turf and specialty crop chemicals to the Indianapolis ag chemical and biotechnology firm. Included in the sale are Dithane fungicide, Goal herbicides and Confirm and Intrepid insecticides.
"We look at this as an opportunity to round out our portfolio," said company spokeswoman Christine Kirby.
In a statement, Rohm and Haas chief executive Raj Gupta said parting with the longtime holding was a difficult decision but that the ag chemical business needs a strong global presence to flourish.
Dow AgroSciences said the deal will boost annual sales to $3 billion.
Rohm and Haas generated $531 million from its ag businesses in 2000.
Kirby didn't know whether the acquisition would add to the 1,400 workers at Dow AgroSciences' Far-Northwestside headquarters. Dow AgroSciences is supported by 6,000 workers worldwide, although some of those employees are on the payroll of parent Dow Chemical Co.
The sale includes parts of manufacturing plants in Jacarei, Brazil; Barranquilla, Colombia; Lauterbourg, France; and Mozzanica, Italy.
All of the Nantong, China, plant will transfer to Dow AgroSciences, as will assets in Muscatine, Iowa. The deal also includes a manufacturing site in Philadelphia.
The transaction, which is subject to regulatory approval, is expected to close in the second quarter.
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