paying for all the decades of hard work
and inventiveness, creativity and market savvy that Rohm and Haas has
accumulated. Rohm and Haas will be
handing Dow a “pat hand” in numerous
markets. This is one of those acquisitions where goodwill is truly a valuable
part of the purchase. Rohm and Haas
has established a solid, reputable name
for acrylics around the globe. The brand
names Rhoplex, Primal, Acrysol and
Rhopaque among others are well
known throughout the coatings industry. Similar levels of brand recognition
have been established in other markets
served by Rohm and Haas emulsions
(i.e., adhesives, graphic art, floor care,
textile and nonwovens, caulks/sealants,
cement/concrete additives, etc.).
In addition to Dow now having firmly established, time and customer
proven products/brands in the market
place they will also be acquiring an
extremely well established R&D and
manufacturing group. The expertise
and ability of these groups is legendary.
Although Dow is a true global player,
they were never able to take the UCAR
technology into all global markets.
Rohm & Haas has established assets,
infrastructure support, selected the
best channels to customers around the
globe. They have made enormous inroads into China and have been working hard to establish a solid footing in
India, Russia and the Middle East.
Is all of this worth what Dow is paying for Rohm and Haas? Well, what was
Dow’s option? There is an old saying
that if you have sufficient time and
money all things are possible. By purchasing Rohm and Haas Dow has shortened the amount of time it would take
them to establish a similar position in
the global market place by a considerable amount. The price agreed to is a
fair price and acknowledges the difficulty of anyone establishing what Rohm
and Haas has accomplished. One area
of concern might be that with the failing
global economy it would be very easy for
Dow to start focusing on maximizing
profit (i.e., cost cutting). This usually
means the layoff of people. In the specialty chemicals business, it is the people that make a difference, not reactors
and products per se. If Dow takes a
short-term profit approach this acquisition may not yield the value that Dow
or Rohm and Haas feels is there.
My advice to Dow is to take it slow
and easy. Learn before you choose to act,
know where the value resides in your
acquisition and don’t throw out the baby
with the bath water. Sure, the economy
is in the tank at the moment, but it
won’t last forever. If you choose to let go
of essential holders of intellectual know-
ledge they won’t be there when you need
them. CW
See Chemark’s ad this month on page xx.
About the author: Dan Watson is vice
president of Chemark’s Far East operation
and specialist in acrylic systems globally.
He is the author of Chemark’s Coatings
Highlights and served for more than 28
years in the Far Eastfor Rohm & Haas.
