Rohm and Haas Company Divests its Equity Stake in UP Chemical Company
Friday April 4, 8:15 am ET
PHILADELPHIA--(BUSINESS WIRE)--Rohm and Haas Company will divest its 40 percent equity interest in UP Chemical Company, a South Korean firm that specializes in DRAM and high-k gate dielectric precursor technology that is used to manufacture advanced semiconductors. Rohm and Haas signed an agreement to sell its equity interest to Woori Consortium.
“We identified UP Chemical as a good strategic partner during the very early stages of using ALD (atomic layer deposition) in semiconductor manufacturing,” said Dr. Yi Hyon Paik, vice president and business group director, Rohm and Haas Electronic Materials. “In 1998, Rohm and Haas invested $3.5 million in UP Chemical. We’ve been very pleased with the return on this investment.”
As part of the transaction, Rohm and Haas received approximately $112 million for its equity interest, reflecting a pre-tax gain of approximately $84 million. The Company anticipates that the impact on second quarter 2008 earnings per diluted share of this gain will be $0.22. (This transaction will be reflected in Rohm and Haas’s second quarter results.) The Company expects that its full-year 2008 Affiliate Earnings will be reduced by $0.04 per diluted share as a result of this divestiture.
Following the divestiture of its equity interest in UP Chemical, Rohm and Haas will continue to participate in the ALD market. Last year, Rohm and Haas Electronic Materials signed an exclusive licensing agreement with Harvard University for a novel class of amidinate compounds, the next generation of ALD materials used in advanced semiconductors.
The transaction closed on April 4, 2008.
About Rohm and Haas Company
Leading the way since 1909, Rohm and Haas is a global pioneer in the creation and development of innovative technologies and solutions for the specialty materials industry. The company’s technologies are found in a wide range of industries including: Building and Construction, Electronics and Electronic Devices, Household Goods and Personal Care, Packaging and Paper, Transportation, Pharmaceutical and Medical, Water, Food and Food Related, and Industrial Process. Innovative Rohm and Haas technologies and solutions help to improve life every day, around the world. Based in Philadelphia, PA, the company generated annual sales of approximately $8.9 billion in 2007.
About Rohm and Haas Electronic Materials
Rohm and Haas Electronic Materials develops and delivers innovative material solutions and processes to the electronic and optoelectronic industries. Focused on the circuit board, semiconductor manufacturing, advanced packaging, and flat panel display industries, its products and technologies are integral elements in electronic devices around the world.
Source: Rohm and Haas Company
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