Berkshire Hathaway acquire Lubrizol approx $ 9.7 billion

Berkshire Hathaway to acquire Lubrizol for approx $ 9.7 billion

12:22 PM, 17th June 2011
Berkshire Hathaway to acquire Lubrizol for approx $ 9.7 billion
Warren Buffett, CEO, Berkshire Hathaway. © Reuters Photo

The company will acquire Lubrizol for $ 135 per share in an all cash transaction. The 28 per cent premium represents compelling value for all Lubrizol stakeholders. This will advances Lubrizol’s focus on long-term customer needs.

OMAHA/CLEVELAND, US: Berkshire Hathaway Inc said it will acquire 100 per cent of outstanding Lubrizol shares for $ 135 per share in an all cash deal. The transaction is thus valued at approximately $ 9.7 billion, including approximately $ 0.7 billion in net debt, making it one of the largest acquisitions in Berkshire Hathaway history. This price represents a 28 per cent premium over Lubrizol’s closing price on Friday, March 11, 2011 and is also 18 percent higher than Lubrizol’s all-time high share closing price.

“Lubrizol is exactly the sort of company with which we love to partner – the global leader in several market applications,” said Warren Buffett, CEO, Berkshire Hathaway.

“This transaction provides compelling value to our shareholders and is an endorsement of the growth and diversification Lubrizol has achieved. We believe the philosophy of supporting long-term global investments in technology, assets and employees will enhance execution of our growth strategies. A long-term commitment is more important than ever in today’s global economy to deliver true market-leading products,” said James Hambrick, Chairman, Lubrizol.

In view of all the approvals, the transaction is expected to be completed during the third quarter of 2011. After the close of the transaction, Lubrizol will operate as a subsidiary of Berkshire Hathaway and will continue to provide innovative technology, outstanding service and superior global supply chain support to its customers. Lubrizol will remain located at its Wickliffe, Ohio, headquarters and will continue to be led by its current management team.

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