Berkshire Hathaway Deals for Lubrizol

Monday, March 14, 2011 @ 03:03 PM gHale


Berkshire Hathaway will pay $9 billion to purchase specialty chemical maker, Wickliffe, OH-based Lubrizol.

Lubrizol fits much of Berkshire Hathaway’s deal-making criteria. It is a large company, with earnings of $732 million in 2010. Those earnings are relatively consistent, too.

Lubrizol makes goods for the global transportation, industrial and consumer markets, including fuel additives for gasoline and diesel.

The management team has been in place for a while, too — another tenet of Berkshire’s chief, Warren E. Buffett’s investment philosophy. Lubrizol’s chief executive, James Hambrick, joined the company in the 1970s while still in school, and has been in the top job since 2004.

“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,” Buffett said.

Lubrizol is Buffett’s second biggest acquisition in the last five years after Burlington Northern.



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