Berkshire Hathaway Inc. and The Lubrizol Corporation have formed a definitive agreement for Berkshire Hathaway to acquire 100 percent of outstanding Lubrizol shares for $135 per share in an all-cash transaction. The transaction, which was unanimously approved by the board of directors of each company, is valued at approximately $9.7 billion, including approximately $0.7 billion in net debt, making it one of the largest acquisitions in Berkshire Hathaway history. This price represents a 28 percent premium over Lubrizol's latest closing price and is also 18 percent higher than Lubrizol's all-time high share closing price.
"Lubrizol is exactly the sort of company with which we love to partner. A global leader in several market applications run by a talented CEO, James Hambrick," said Warren Buffett, Berkshire Hathaway CEO. "Our only instruction to James is to just keep doing for us what you have done so successfully for your shareholders."
After the close of the transaction, Lubrizol will operate as a subsidiary of Berkshire Hathaway and will remain located at its Wickliffe, Ohio, headquarters and will continue to be led by its current management team.