Rohm and Haas Company Board Authorizes $2 Billion Share Repurchase Program, Including $1 Billion Accelerated Share Repurchase; Declares Quarterly Dividend
Philadelphia, PA, July 16, 2007 - The Board of Directors of Rohm and Haas Company (NYSE: ROH) today authorized the repurchase of up to $2 billion of its common stock.
The company plans to implement this new repurchase authorization in two stages:
Execute a $1 billion accelerated share repurchase (ASR) during the third quarter of 2007, which will be funded by the issuance of new debt. The company intends to execute the ASR following the completion of its existing $1 billion share repurchase program, which was authorized by the Board of Directors in December, 2004.
Utilize the remaining $1 billion over 2008-2010, with the timing of the purchases dependent on market conditions. These purchases will be funded from available cash.
"Today's Board actions demonstrate our commitment to leverage our financial strength to drive shareholder value, and underscore our confidence in the long-term potential for Rohm and Haas Company," commented Raj L. Gupta, chairman, president and chief executive officer. "The evolution of our capital structure is an important complement to our Vision 2010 strategic plan for accelerating value creation. Our strong portfolio, rapidly growing presence in emerging markets, leadership in innovation, operational excellence, and strong talent deployed throughout the enterprise, support this shift in capital structure to provide greater rewards for our shareholders."
Gupta noted that execution of the ASR and related financing is anticipated to increase the company's debt to total capital ratio to approximately 50 percent. Further, completion of the existing program and the execution of the ASR are anticipated to reduce shares outstanding to approximately 195 million shares by September 30, 2007 from 219 million at the end of 2006.
The Board also today declared a regular quarterly dividend of $0.37 per common share, payable on September 4, 2007 to shareholders of record at the close of business on August 10, 2007.
About Rohm and Haas Company
Rohm and Haas is a global leader 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, Industrial Process, Packaging and Paper, Transportation, Household and Personal Care, Water, Food and Retail and Pharma and Medical. Based in Philadelphia, Pa, the company generated annual sales of approximately $8.2 billion in 2006. Visit www.rohmhaas.com for more information.
Contacts:
Media Relations
Brian McPeak
Corporate Communications
+1-215-592-2741
Bmcpeak@rohmhaas.com
