Rohm And Haas Expands Electronic Materials Influence By Increasing Stake In Rodel

Rohm and Haas Co. (Philadelphia), has increased its ownership stake in Rodel, Inc. (Phoenix, AZ) to 48%. Rodel is the global leader in polishing technology for semiconductors, silicon wafers and storage-media substrates.

"We've made no secret about our intention to grow our Electronic Materials business group," says Raj Gupta, vice chairman of Rohm and Haas and head of the Electronic Materials business group. "An increased position in Rodel is the logical next step in our plan to grow the business quickly and profitably. We want to be the technology and market leader for the electronic materials market."

Rodel has played a leading role in helping the semiconductor industry to create optically flat, atomically perfect surfaces on silicon chips. The company is also a leading supplier of materials for chemical mechanical planarization (CMP) technology used to make multi-layered semiconductor chips, according to Bill Budinger, founder and chairman of Rodel. Today, CMP represents about half of Rodel's business, with silicon and disk consumables making up most of the difference.

Since June 1997, when Rohm and Haas purchased a 25% interest in Rodel, the firm has been an important contributor to the success of Rohm and Haas' Electronic Materials business. That interest grew to 33% by the end of 1998 and to 48% with the agreement completed on Jan. 15, 1999. Rodel, a privately held global company, has estimated annual sales of $200 million.

Rohm and Haas's presence in the electronic materials industry is anchored by Shipley Co. (Marlborough, MA), maker of liquid photoresists and other products used to make semiconductor chips. Shipley also makes chemicals essential to the production of printed circuit boards and has the majority interest in a joint venture in Korea with LG Chemical.

In December 1998, Rohm and Haas announced its intention to acquire LeaRonal, Inc. (Freeport, NY), maker of specialty chemicals for printed circuit boards, semiconductor packaging and electronic connector plating. LeaRonal posted $242 million in sales during its 1998 fiscal year. When the LeaRonal acquisition is completed, estimated sales of Rohm and Haas's Electronic Materials business group will be $650 million a year, excluding the impact of Rodel sales, which are not consolidated.

Rohm and Haas is a Fortune 400 specialty chemical company with approximately $4 billion in annual sales. The company's specialty products are found in decorative and industrial paints, semiconductors, shampoos, water-purification systems and other products. Rohm and Haas's Electronic Materials division reported sales of $400 million in 1997. Electronic Materials has reported revenue growth at approximately 11% per year during the past five years.

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