NEW YORK (CNNMoney) -- Warren Buffett's investment company, Berkshire Hathaway, said Monday that it has agreed to buy the chemical company Lubrizol for $9.7 billion.
Berkshire Hathaway (BRKA, Fortune 500) and Lubrizol (LZ, Fortune 500) said the deal was for 100% of all outstanding shares at $135 per share. That's a 28% premium over Lubrizol's closing price on Friday of $105.44 per share, and is 18% higher than the company's highest-ever closing price, according to the companies.
The deal includes $700 million in assumed debt.
Berkshire described the deal as "one of the largest acquisitions in Berkshire Hathaway history."
"Lubrizol is exactly the sort of company with which we love to partner -- the global leader in several market applications run by a talented CEO, James Hambrick," said Buffett in a statement.
Lubrizol produces and supplies lubricant additives for engine oils, as well as industrial lubricants and fuel additives for gasoline and diesel. The company also makes ingredients for personal care products and pharmaceutical drugs, as well as coatings and resins for plastics technologies.
Based in Wickliffe, Ohio, Lubrizol has 6,900 workers worldwide and had 2010 revenue of $5.4 billion. 
| Index | Last | Change | % Change |
|---|---|---|---|
| Dow | 15,335.28 | -19.12 | -0.12% |
| Nasdaq | 3,496.43 | -2.54 | -0.07% |
| S&P 500 | 1,666.29 | -1.18 | -0.07% |
| Treasuries | 1.96 | 0.02 | 0.82% |
| Company | Price | Change | % Change |
|---|---|---|---|
| Bank of America Corp... | 13.51 | 0.08 | 0.60% |
| Cisco Systems Inc | 23.94 | -0.30 | -1.22% |
| Microsoft Corp | 35.08 | 0.21 | 0.60% |
| Sprint Nextel Corp | 7.29 | -0.03 | -0.41% |
| Advanced Micro Devic... | 4.10 | 0.03 | 0.74% |
|
Apple executives including CEO Tim Cook are due to appear before a Senate subcommittee on Tuesday, as lawmaker study how multinationals keep profits offshore for tax purposes. More |
Apple executives including CEO Tim Cook are due to appear before a Senate subcommittee on Tuesday, as lawmaker study how multinationals keep profits offshore for tax purposes. More |
The Internet asked Marissa Mayer to "please make Flickr awesome again," and in turn, the Yahoo CEO is revamping her company's photo-sharing service. More |
Small business owners say they're not yet feeling the effects of an improving economy, and most aren't rushing to hire, or seeking funds to invest in their businesses. More |
Between ballooning student loans, credit cards and money owed to family members, graduates of the class of 2013 are facing an average $35,200 in debt, a Fidelity survey found. More |
.
