Rohm And Haas to Sell Morton Industrial Coatings to BASF
Rohm and Haas Company said that it intends to sell its Industrial Coatings business to BASF for $175 million. The two companies have reached a basic agreement on this transaction, which is subject to approval by the appropriate authorities.
Rohm and Haas acquired Morton Industrial Coatings in June 1999 as part of the larger $4.9 billion acquisition of Morton International. Sales for this business were approximately $155 million for fiscal year 1998. Morton Industrial Coatings operates five manufacturing sites in North America: Batavia, Ill.; Chicopee, Mass.; Colton, Calif.; Decatur, Ala.; and Orrville, Ohio; and employs more than 500 people. The company also operates research and development facilities in Batavia Ill., and in Columbus, Ohio, on the grounds of Ohio State University. Rohm and Haas will retain its other industrial coatings businesses that were not a part of the Morton International acquisition.
"By acquiring this industrial coatings business of Rohm and Haas, we are taking the decisive step to be a world leader in coil coatings, a technology of the future," says Klaus Peter Loebbe, head of the BASF Group's Coatings Division and chairman of the board of executive directors of BASF Coatings Aktiengesellschaft (AG). "This purchase, which covers the entire range of coil coatings technologies, will also provide synergies on a worldwide scale and fits nicely with our product portfolio in North America."
"We are pleased to become a part of the BASF family," said Jim Kendall, Vice President of Rohm and Haas and head of the Morton Industrial Coatings business. "We have had a long-standing reputation for technical innovation, product quality and above market growth rates. By joining with BASF, we hope to exploit and improve upon these advantages not only in existing markets, but also in new markets and technologies worldwide."
Coil coating is a continuous process in which special coating materials are roll applied to steel or aluminum coils at speeds of up to 700 feet per minute. After baking, the coated metal is rewound. These pre-coated metal coils are then transformed into facade cladding or roofing, for example, or housings of appliances such as refrigerators or washing machines.
"Coil coating technology would be of interest to manufacturers looking to eliminate the need for a downstream coating process and has tremendous potential in automotive applications," says Frank E. McKulka, president of BASF Corporation's Coatings and Colorants Division.
The Coatings business of BASF Corporation (Mount Olive, N.J.) operates from the company's site in Southfield, Mich. BASF Coatings AG (Muenster, Germany) and its worldwide affiliates belong to the global Coatings Division of the BASF Group (Ludwigshafen, Germany). With about 10,000 employees, this BASF division will achieve world sales exceeding $2 billion in 1999. Major regional markets for the division include Europe, North and South America, and Asia/Pacific. With overall sales of about $29 billion in 1998 and a workforce of 105,000 employees, BASF is one of the world's top chemical companies.
Rohm and Haas Company is a $6.5 billion global specialty chemical company whose products consistently improve the quality of life around the world. Rohm and Haas technology is found in paints and coatings, adhesives and sealants, household products, personal computers and electronic components. It also helps bring food to the table - fruits and vegetables - and salt, an essential ingredient for life. Rohm and Haas employs more than 20,000 people and operates facilities in 25 countries.