dow's acquisition program
DESCRIPTION
Merger and acqusitionTRANSCRIPT
![Page 1: Dow's acquisition Program](https://reader035.vdocuments.us/reader035/viewer/2022081718/54604f6baf79592b708b529a/html5/thumbnails/1.jpg)
Dow’s Acquisition Program
Presented by:Ishfaq Shah
Neha BansalPravesh Mishra
Vishal Katoch
![Page 2: Dow's acquisition Program](https://reader035.vdocuments.us/reader035/viewer/2022081718/54604f6baf79592b708b529a/html5/thumbnails/2.jpg)
Roadmap of Presentation
• Introduction to Chemical Industry• Introduction to Dow Chemicals• Acquisition of UCC• Acquisition Program of Dow• Acquisition of Wolff Wolsrode
![Page 3: Dow's acquisition Program](https://reader035.vdocuments.us/reader035/viewer/2022081718/54604f6baf79592b708b529a/html5/thumbnails/3.jpg)
Key persons in the case
• Randy Croyle – Director, M&A Technology Center
• Bhavik Karia– Manager, Information Systems Business IS
![Page 4: Dow's acquisition Program](https://reader035.vdocuments.us/reader035/viewer/2022081718/54604f6baf79592b708b529a/html5/thumbnails/4.jpg)
The Chemical Industry
![Page 5: Dow's acquisition Program](https://reader035.vdocuments.us/reader035/viewer/2022081718/54604f6baf79592b708b529a/html5/thumbnails/5.jpg)
CHEMICAL INDUSTRY
![Page 6: Dow's acquisition Program](https://reader035.vdocuments.us/reader035/viewer/2022081718/54604f6baf79592b708b529a/html5/thumbnails/6.jpg)
STRATEGIC EVOLUTION OF CHEMICALS FIRMS
![Page 7: Dow's acquisition Program](https://reader035.vdocuments.us/reader035/viewer/2022081718/54604f6baf79592b708b529a/html5/thumbnails/7.jpg)
Dow Chemicals
![Page 8: Dow's acquisition Program](https://reader035.vdocuments.us/reader035/viewer/2022081718/54604f6baf79592b708b529a/html5/thumbnails/8.jpg)
Time line of M&A
![Page 9: Dow's acquisition Program](https://reader035.vdocuments.us/reader035/viewer/2022081718/54604f6baf79592b708b529a/html5/thumbnails/9.jpg)
Acquisition of Union Carbide Corporation
![Page 10: Dow's acquisition Program](https://reader035.vdocuments.us/reader035/viewer/2022081718/54604f6baf79592b708b529a/html5/thumbnails/10.jpg)
Acquisition Program of Dow
![Page 11: Dow's acquisition Program](https://reader035.vdocuments.us/reader035/viewer/2022081718/54604f6baf79592b708b529a/html5/thumbnails/11.jpg)
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
![Page 12: Dow's acquisition Program](https://reader035.vdocuments.us/reader035/viewer/2022081718/54604f6baf79592b708b529a/html5/thumbnails/12.jpg)
Criteria for Acquisition
1. Fit with Dow’s strategy
2. Earning within second year of operation
3. Buy-back of shares & value of shareholders
![Page 13: Dow's acquisition Program](https://reader035.vdocuments.us/reader035/viewer/2022081718/54604f6baf79592b708b529a/html5/thumbnails/13.jpg)
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
![Page 14: Dow's acquisition Program](https://reader035.vdocuments.us/reader035/viewer/2022081718/54604f6baf79592b708b529a/html5/thumbnails/14.jpg)
• 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
![Page 15: Dow's acquisition Program](https://reader035.vdocuments.us/reader035/viewer/2022081718/54604f6baf79592b708b529a/html5/thumbnails/15.jpg)
Acquisition of Wolff Wolsrode
• Wolff Walsrode, headquartered in Bomlitz, Germany • Specializes in cellulose derivatives, food casings and site
services
![Page 16: Dow's acquisition Program](https://reader035.vdocuments.us/reader035/viewer/2022081718/54604f6baf79592b708b529a/html5/thumbnails/16.jpg)
Integration of Wolff
![Page 17: Dow's acquisition Program](https://reader035.vdocuments.us/reader035/viewer/2022081718/54604f6baf79592b708b529a/html5/thumbnails/17.jpg)
The “Chill Period”• Initial timeline was 1st July 2007 to April 2008• No integration till October 2007
![Page 18: Dow's acquisition Program](https://reader035.vdocuments.us/reader035/viewer/2022081718/54604f6baf79592b708b529a/html5/thumbnails/18.jpg)
The Two Dilemmas
• Extent of Integration• Speed of Integration
![Page 19: Dow's acquisition Program](https://reader035.vdocuments.us/reader035/viewer/2022081718/54604f6baf79592b708b529a/html5/thumbnails/19.jpg)
Any Questions..???
Thank You