The initiative will bring together the wood biocides business of Rohm and Haas Company and the wood protection chemicals operation of Chemical Specialities Inc (CSI).
The new company will start up on January 1, 2007 and is to be equally owned by CSI and Rohm and Haas. CSI will receive US$75m from Rohm and Haas as part of the agreement.
Rohm and Haas’ microbial control business for paints, coatings and other building and construction products will not be included in the venture.
CSI president and CEO Steve Ainscough said the joint operation is designed to take advantage of the significant growth potential to develop and commercialise new products for the wood treatment industry.
CSI and Rohm and Haas are a perfect fit,” said Mr Ainscough. “With more than US$200m in annual sales, we will be in a unique position to combine our technologies and expertise to provide advanced products and services.”
He said the venture will introduce “next generation” preservatives in 2007, which have been through more than 10 years of field testing.
Guillermo Novo, Rohm and Haas Biocides’ vice-president, said the partnership combined Rohm and Haas’ expertise in microbial control technologies, formualtions, global manufacturing and research, with CSI’s understanding of the wood treatment market.
CSI and Rohm and Haas have combined annual sales of US$200m.
