"This acquisition provides Lubrizol with an enhanced presence in the natural ingredients market, which we view as a significant step in continuing to grow our personal and home care product portfolio," commented Rick Tolin, Lubrizol VP, personal care and home care.
The acquisition complements Lubrizol’s current personal care products line and strengthens its strategy to provide technology solutions to its global cosmetics customers.
"The joining of the two companies creates a portfolio of industry-leading technologies that will help make our customers more successful through expanded access to innovative ingredients, formulations and applications knowledge", added Tolin.
Active Organics claims to work directly with customers identifying new product opportunities and applications and Lubrizol will have access to this as well as the natural ingredients firm’s North American manufacturing and distribution platform.
According to the company, the platform is used to meet global specification demands, product quality control standards, to cater to regional consumer demands and to provide reliability of supply.
Lubrizol did not disclose the financial terms of the agreement but expects it to conclude by the end of 2011, in the form of a stock purchase.
As part of the acquisition, Active Organics will become a fully owned subsidiary of Lubrizol and will be keeping the name and being run in the same manner. All employees at the natural ingredients will also be kept.
Assets of the company which will be transferred over as part of the agreement includes dedicated technology, application knowledge, production capabilities, business base as well as intellectual property, trade names and customer lists and relationships.