The Dow Chemical Company and Rohm and Haas Company announced today they have reached an agreement for Dow AgroSciences LLC, a wholly owned subsidiary of Dow, to purchase Rohm and Haas's Agricultural Chemicals business, including working capital, for approximately US $1 billion, according to a press release issued by Dow.

Under terms of the agreement, Dow AgroSciences will acquire Rohm and Haas's fungicide lines, insecticides, herbicides, other product lines, trademarks, and license to all agricultural uses of its biotechnology assets.

The sale will result in the transfer of ownership of part or all of Rohm and Haas's manufacturing sites in Brazil, Colombia, France, Italy and China, as well as assets owned by Rohm and Haas in Muscatine, Iowa. The Philadelphia plant's agricultural chemicals operations will become a toll manufacturing site for Dow AgroSciences.

According to A. Charles Fischer, President and CEO of Dow AgroSciences, this agreement continues to advance the company's strategy of value-added growth through mergers, acquisitions, alliances and internal research and development capabilities.

In 2000, Rohm and Haas's Ag products sales were US $531 million. With this acquisition, Dow AgroSciences' annual sales are expected to be approximately US $3 billion annually. The transaction is expected to close in second quarter 2001, subject to regulatory approvals.

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