Berkshire Hathaway closes on $9.7bn Lubrizol deal
Berkshire Hathaway has officially completed its acquisition of US-based specialty chemicals firm Lubrizol for $135/ share in an all-cash transaction.
The transaction, having been overwhelmingly approved by Lubrizol shareholders and having met all US and non-US regulatory filing requirements, is valued at approximately $9.7 billion, including approximately $0.7 billion in net debt.
The transaction was announced on March 14, 2011.
“Lubrizol is a great addition to the Berkshire Hathaway family of companies,” said Warren Buffett, Berkshire Hathaway CEO. “We expect to see continued strong performance from the company as it executes its growth strategies.”
James Hambrick, Lubrizol CEO, said: “As part of Berkshire Hathaway, we have real and significant opportunities to continue creating customer value by providing complex and innovative chemistries, formulations and solutions for some of the most demanding performance applications in the world.”
Hambrick also noted that the culture and corporate philosophy established by Lubrizol’s founders remains intact.
“With little change to daily activities, Lubrizol employees remain committed to maintaining the industry-leading expertise and technical skills required to meet the needs of our customers,” Hambrick said.
With the closing of this transaction, Lubrizol is now a wholly-owned subsidiary of Berkshire Hathaway, providing innovative technology, outstanding service and superior global supply chain support to its customers.
Lubrizol’s international headquarters remain located in Wickliffe, Ohio and the company continues to be led by Hambrick.
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