OMNOVA Solutions to Acquire HPP Product Line From Dow
Fairlawn, Ohio, USA, 13 May 2010 /PRNewswire/ -- OMNOVA Solutions Inc. (NYSE: OMN) today announced that the Federal Trade Commission has granted its approval for the acquisition by OMNOVA of The Dow Chemical Company's hollow sphere plastic pigment (HPP) product line. The transaction is expected to close within the next few days.
Hollow sphere plastic pigments are used primarily in paper coatings to provide gloss and opacity. "This product line will further enhance our leading product offering to the coated paper and paperboard industry and provide additional growth opportunities in other applications," said Kevin McMullen, chairman and CEO of OMNOVA Solutions.
Concurrent with the HPP closing, the companies also will terminate the RohmNova joint venture (JV), a sales, marketing, and technical service alliance that has served the coated paper and paperboard market since 2002. Following the termination of the joint venture, OMNOVA will market, sell, and service its products directly to customers. The termination was necessitated by Dow Chemical's acquisition of the JV partner, Rohm and Haas Company.
"Going forward, OMNOVA is well positioned to successfully serve the coated paper and paperboard market with leading technology, products, and people, and we are excited to move to this new level of focus and commitment to the industry," McMullen said. "Throughout the existence of the joint venture, OMNOVA Solutions has strengthened its manufacturing, customer, and technical service, and new product development capability. OMNOVA will continue to provide differentiated latex binders and additives through a fully staffed organization as we have done successfully for more than half a century."
OMNOVA Solutions has provided styrene butadiene latex coatings and related products to the paper market for more than 50 years. During that time, the company has distinguished itself through innovative products and a reputation for close partnering with its customers.