PHILADELPHIA & ROCHESTER, N.Y.--(BUSINESS WIRE)--Rohm and Haas Company (NYSE:ROH) and Eastman Kodak Company (NYSE:EK) have entered into an agreement for Rohm and Haas to acquire Kodak’s Light Management Films business. The business produces advanced films that improve the brightness and efficiency of liquid crystal displays (LCD).
As part of the agreement, Rohm and Haas will acquire the intellectual property (IP) associated with Kodak’s light management films, including patent and trademarks, know-how, trade secrets, the business’s portfolio of current and future products, and a license to additional IP. The acquisition also includes a semiworks facility in Rochester, New York, and the supply of key raw materials. Following the close of the transaction, Rohm and Haas will build a dedicated, high-volume manufacturing facility in Asia. Start-up is planned for early 2008.
“Today’s announcement is an exciting first step in building our Flat Panel Display Technologies business,” said Dr. Yi Hyon Paik, vice president and business group director, Rohm and Haas Electronic Materials. “The addition of advanced light management films complements our growing portfolio of flat panel materials. Kodak has done a great job creating unique display films and establishing an initial market position in Asia. The technology pipeline is deep and well positioned to meet emerging display requirements, especially in the fast-growing LCD TV market,” Paik added.
Robert Cournoyer, general manager of Kodak’s Light Management Films business, noted that the business is an excellent fit with Rohm and Haas. “This is great news for our customers and our people because it puts the business and its capabilities in the hands of a company with a strong track record in the electronic materials industry.”
Kodak, a world leader in imaging technology, has developed a family of light management films used in a variety of applications. The first adaptation of this technology for the flat panel industry uses millions of individual lenses randomly arranged on a polycarbonate film. One of several light management layers in a typical LCD application, this unique film improves brightness, color consistency, and viewing angle while reducing moire, an optical abnormality common in commercial films.
Dr. Pierre Brondeau, Rohm and Haas executive vice president and business group executive, Electronic Materials and Specialty Materials, said that the acquisition supports the company’s strategy to grow its Electronic Materials franchise.
“In late 2006, Rohm and Haas launched its Vision 2010 initiative, a targeted plan to accelerate growth, improve profitability, and aggressively invest in our growth platforms. Our Electronic Materials group has delivered outstanding performance over the last few years, and we believe there’s significant opportunity to expand our position in markets where innovation is paramount,” Brondeau said. “We have pledged to aggressively grow our Electronic Materials business over the next several years, and this acquisition is the first of many steps we’re pursuing to meet that objective.”
Financial terms of the agreement were not disclosed. The transaction is expected to close in the first half of 2007, and Kodak employees associated with the business in Rochester, Taiwan, Japan, Korea, and China are expected to join Rohm and Haas Company’s Electronic Materials business.
Forward Looking Statement
This release includes forward-looking statements. Actual results could vary materially, due to changes in current expectations. The forward-looking statements contained in this announcement concerning demand for products and services and sales forecasts, involve risks and uncertainties and are subject to change based on various factors, including the continued timely development and acceptance of new products and services, the impact of competitive products and pricing, cost of raw materials, natural gas, and other energy sources, and the ability to achieve price increases to offset such cost increases, and the impact of tax and other legislation and regulation in the jurisdictions in which the company operates. Further information about these risks and others can be found in the company's SEC 10-K filing of February 28, 2007.
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 markets including: Building and Construction, Electronics, Food and Retail, Household and Personal Care, Industrial Process, Packaging, Paper, Transportation and Water. Our innovative technologies and solutions help to improve life everyday, around the world. Based in Philadelphia, PA, the company generated annual sales of approximately $8.2 billion in 2006. Visit www.rohmhaas.com for more information.
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. Additional information about Rohm and Haas Electronic Materials can be found at www.rohmhaas.com.