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. 
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