Multi-billion dollar deal completed for specialty chemicals company

By Andrew McDougall

- Last updated on GMT

Multi-billion dollar deal completed for specialty chemicals company

Related tags Berkshire hathaway

Investment holding company Berkshire Hathaway has announced the completion of one of the biggest deals in its history, as it has acquired Lubrizol for approximately $9.7bn.

With the closing of this transaction, the specialty chemicals firm is now a wholly-owned subsidiary of Berkshire Hathaway, providing its technology, service and global supply chain support to its customers.

Awaiting approval

At the start of the year, USA brought you the story as the deal was initially uncovered and was subject to shareholder approval.

At the time, Berkshire Hathaway CEO Warren Buffett championed Lubrizol as the perfect partner as it offers specialty chemicals for a number of market applications.

Speaking about the deal now that it has been officially closed, Buffett said: "Lubrizol is a great addition to the Berkshire Hathaway family of companies. We expect to see continued strong performance from the company as it executes its growth strategies."

As expected the acquisition was greeted with overwhelming approval by Lubrizol’s shareholders and met all US and non-US regulatory filing requirements.

New owners, same business

James Hambrick, Lubrizol chairman, and CEO will continue to lead the company, as promised in March, and will do so at the international headquarters in Wickliffe, Ohio, which will also remain.

"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,” ​he said.

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."

Lubrizol manufactures a number of specialty ingredients for the skin care hair care and cleansing categories and have confirmed the personal care market remains a key focus for the business.

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