Dow Chemical in deals to grow epoxy systems unit
Thu Sep 13, 2007 2:58pm EDT
NEW YORK, Sept 13 (Reuters) - Dow Chemical Co, the largest U.S. chemical maker, said on Thursday that it has agreed to acquire three companies to expand its new epoxy systems business.
The company agreed to buy UPPC AG in Germany, and POLY-CARB Inc and GNS Technologies in the United States.
Terms of the transactions were not disclosed, but the deals are expected to add about $100 million in annual revenue.
Epoxy resins are used in paints, adhesives, electrical systems and aerospace applications. The three companies that Dow Epoxy is acquiring are epoxy formulators that cater to some of these market segments.
Dow expects to complete each acquisition within 30 to 45 days.
Pepe Carnevale, global business director of Dow Epoxy Systems, said the company is also closely following the Huntsman-Hexion deal.
In July, Apollo Management's Hexion Specialty Chemicals agreed to acquire Huntsman Corp for $6.5 billion. Huntsman and Hexion are both key players in the epoxy market, along with Dow.
Analysts expect regulators to push the Huntsman-Hexion combination to sell certain epoxy assets before the deal gets approved.
Carnevale also said on a conference call that the company is keen to expand its business in the growing economies of China and India.
Shares of Dow rose 14 cents to $42.04 in afternoon trading on the New York Stock Exchange.
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