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Breaking Flooring News

Dow and Reichhold to join forces in specialty latexes; Dow to acquire Reichhold's paper and carpet latex businesses

March 7, 2001
RESEARCH TRIANGLE PARK, N.C. -- The Dow Chemical Co. and Reichhold Inc. plan to form a joint venture, Dow Reichhold Specialty Latex LLC, by combining the specialty latex businesses of Dow's Emulsion Polymers unit and Reichhold.

As part of this transaction, Dow would acquire Reichhold's carpet and paper latex businesses. Dow and Reichhold expect to finalize these transactions and seek the necessary regulatory approvals in the coming months. Terms of the transactions will not be disclosed.

The joint venture will focus primarily on butadiene-based latexes, but also would have access to a broad range of latex chemistries. These products are used in a wide range of end use applications. The joint venture is expected to employ 400 people and will have sales, marketing and research support in North America, Latin America, Europe and the Pacific. Jeffrey L. Welker, senior director of corporate planning for Reichhold, will be named president of the new joint venture, subject to completion of the transactions. Upon completion of the transaction, the joint venture will be headquartered in Research Triangle Park, N.C. The joint venture will operate two latex production facilities located in Cheswold, Del., and Kensington, Ga., and access Dow's extensive global manufacturing network. New facilities are already being planned to service fast growing markets in the Pacific.

As part of the planned transactions, Dow also would purchase Reichhold's carpet and paper latex businesses. “We look forward to acquiring the unique technologies, products and services of Reichhold that will allow Dow to expand into new carpet and paper latex market segments,” said Ted Cosse, global vice president of Dow Emulsion Polymers.

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