Buffett's Berkshire buys Lubrizol for $9.7 billion

By Aaron Smith, staff writer


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. To top of page

Frontline troops push for solar energy
The U.S. Marines are testing renewable energy technologies like solar to reduce costs and casualties associated with fossil fuels. Play
25 Best Places to find rich singles
Looking for Mr. or Ms. Moneybags? Hunt down the perfect mate in these wealthy cities, which are brimming with unattached professionals. More
Fun festivals: Twins to mustard to pirates!
You'll see double in Twinsburg, Ohio, and Ketchup lovers should beware in Middleton, WI. Here's some of the best and strangest town festivals. Play
Index Last Change % Change
Dow 18,034.93 208.63 1.17%
Nasdaq 4,994.60 62.79 1.27%
S&P 500 2,100.40 19.22 0.92%
Treasuries 1.90 0.04 2.43%
Data as of 3:36am ET
Company Price Change % Change
General Electric Co 27.02 -0.23 -0.84%
Bank of America Corp... 15.57 0.01 0.06%
Apple Inc 127.60 2.85 2.28%
Microsoft Corp 42.90 1.29 3.10%
Facebook Inc 83.09 2.31 2.87%
Data as of Apr 20
Sponsors

Sections

The anti-corruption campaign spearheaded by Chinese President Xi Jinping has produced some astonishing examples of official wrongdoing. More

Jen Glantz is carving out a piece of the wedding industry: as a professional bridesmaid. Here's a look at what that entails. More

Fliers report higher satisfaction levels when it comes to flying, but Spirit Airlines ranks lowest on the American Customer Satisfaction Index Travel Report 2015. More