Dow’s Acquisition Program

Presented by:Ishfaq Shah

Neha BansalPravesh Mishra

Vishal Katoch

Roadmap of Presentation

• Introduction to Chemical Industry• Introduction to Dow Chemicals• Acquisition of UCC• Acquisition Program of Dow• Acquisition of Wolff Wolsrode

Key persons in the case

• Randy Croyle – Director, M&A Technology Center

• Bhavik Karia– Manager, Information Systems Business IS

The Chemical Industry

CHEMICAL INDUSTRY

STRATEGIC EVOLUTION OF CHEMICALS FIRMS

Dow Chemicals

Time line of M&A

Acquisition of Union Carbide Corporation

Acquisition Program of Dow

Acquisition Program of Dow

• Dow aimed to expand its business through “organic growth” and JVs

• Shut down of under-utilized and non-competitive facilities, divestiture of non strategic business

• Specialty chemical

Criteria for Acquisition

1. Fit with Dow’s strategy

2. Earning within second year of operation

3. Buy-back of shares & value of shareholders

The M&A Technology Center

• First acquisition with savings of $1.2 billion in 18 month (UCC)

• Due to integration planning and speedy implementation

• Expertises in:– HR– Health & Safety– IT– Supply chain

• Gather all integration related knowledge of 200 JVs since 1980

• Talk to number of companies regarding integration (Daimler chrysler)

• Croyle & team developed standard methodology

• Centre was typically involved from 6-9 months prior and 3 months after acquisition

Acquisition of Wolff Wolsrode

• Wolff Walsrode, headquartered in Bomlitz, Germany • Specializes in cellulose derivatives, food casings and site

services

Integration of Wolff

The “Chill Period”• Initial timeline was 1st July 2007 to April 2008• No integration till October 2007

The Two Dilemmas

• Extent of Integration• Speed of Integration

Any Questions..???

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