Dow to acquire Wolff Walsrode from Bayer

Dow Chemical has agreed to buy Bayer’s Wolff Walsrode business group, primarily involved in cellulose products.

The transaction is expected to close in the first half of 2007, subject to regulatory approval. Financial terms have not been disclosed.

The will create a $1 billion water-soluble polymers business for Dow.

The new business would combine Wolff’s production technology in HEMC (Hydroxyethyl Methyl Cellulose) and CMC (Carboxymethyl Cellulose) chemistry with Dow’s HPMC (Hydroxypropyl Methyl Cellulose) product brands and industry expertise.

HEMC is used to make edible films. In general, cellulose derivatives are used as bulking agents, emulsifiers, stabilizers and thickeners.