Berkshire Hathaway to buy Lubrizol for $9B in cash

Source: Houston Chronicle

OMAHA, Neb. — Warren Buffett's company said Monday it plans to spend about $9 billion cash to add specialty chemical maker Lubrizol Corp. to the eclectic mix of businesses inside Berkshire Hathaway Inc.

The purchase may help satisfy Buffett's appetite for large acquisitions to boost Berkshire's earnings power, but the deal is still significantly smaller than last year's $26.7 billion acquisition of the Burlington Northern Santa Fe railroad.

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n Monday's deal, Berkshire will pay $135 per share, a 28 percent premium to Lubrizol's closing stock price Friday of $105.44. The transaction also includes about $700 million in net debt.

Lubrizol makes chemicals for pharmaceutical companies, fuel additives for gasoline and diesel and other ingredients for the transportation sector. Last month, it reported that its fourth-quarter profit climbed 17 percent because of a $19 million tax benefit and higher sales. The company's revenue grew 11 percent to $1.32 billion.

Read more: http://www.chron.com/disp/story.mpl/ap/top/all/7471268.html

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With Lubrizol headquartered in the Cleveland suburb of Wickliffe, I can only hope that the sale does not result in any jobs leaving the area...Cleveland has been hit hard enough already.

that would be a cause for worry.

"...its fourth-quarter profit climbed 17 percent because of a $19 million tax benefit....

Why does a company that has Billion dollar revenues need anything from the taxpayer? Someone should tell the orange-hued Weeper of the House John Boehner.

And you taxpayers - go phuck yourselves!