It also expects the transaction to be accretive to cash earnings in the first year and to reported earnings per share in the second year, with increasing levels of accretion thereafter. Hercules plans to retain BetzDearborn's sales and marketing force, and talented employees in all parts of both companies will have significant opportunities for growth and advancement, according to a release. On the paper chemical side, BetzDearborn is a world leader in process chemicals with strengths in customer service and support. We share strong technology skills, similar chemistries and a focus on reducing operating costs for customers, which will create new growth opportunities for the combination. Growth is a key part of that commitment.
Acquisitions can help provide that growth, but require a disciplined approach.
Like our recent acquisitions of Citrus Colloids, Houghton's paper chemicals business, and FiberVisions, this transaction meets or exceeds our stated criteria of fitting well with our core franchises, producing significant accretion in both cash earnings and reported earnings, and achieving an internal rate of return that is at least a 50 percent premium to the cost of capital. We are bringing together the best attributes of BetzDearborn and Hercules to create a powerful new specialty chemicals company with the technology, financial and manufacturing strength to achieve strong growth in today's highly competitive global marketplace. The merger will create value for our shareholders, provide valuable benefits to our customers and provide the vast majority of our highly talented and dedicated employees with significant opportunities for career growth and advancement. Hercules will be led by Elliott and Cook as co-CEOs, with Elliott serving as chairman of the board and Cook as vice chairman. Cook and three other BetzDearborn directors will join the Hercules Board, increasing its size from 10 to 14 members.