Berkshire Hathaway acquires Lubrizol for US$9 billion

March 14, 2011

Warren Buffett’s Berkshire Hathaway Inc. agreed to buy additive maker Lubrizol Corp., for about US$9 billion in the cash-flush investor’s second-biggest acquisition in the past five years. Berkshire will pay US$135 a share in cash, 28% more than Lubrizol’s closing price on March 11, Omaha, Nebraska-based Berkshire said. The purchase includes an additional US$700 million of net debt. The purchase is Buffett’s second-largest since 2006, after his agreement in 2009 to buy Burlington Northern Santa Fe railroad. The purchase is expected to be completed in the third quarter. Lubrizol will operate as a subsidiary of Berkshire and remain based in Wickliffe, Ohio. (March 14,2011)

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