Lubrizol to Purchase Croda's Refrigeration Lubricants Business
CLEVELAND, OH, September 3, 2007 - The Lubrizol Corporation (NYSE: LZ) and Croda International Plc have reached an agreement for Lubrizol to purchase Croda's refrigeration lubricants business. This business had revenues of approximately $84 million over the last twelve months.
The acquisition includes Croda's polyol ester and alkyl benzene refrigeration lubricant technology, Emkarate® and Icematic® brand names, customer lists, manufacturing know-how and complementary intellectual property. No manufacturing facilities are included in the transaction.
"This business complements our existing refrigeration lubricants business, which is served by our subsidiary, CPI Engineering Services, Inc., headquartered in Midland, Michigan. This is an example of Lubrizol's strategy to grow through bolt-on acquisitions that enhance existing product lines," stated Val Pakis, Lubrizol Additives' vice president of industrial products.
Phase out of ozone-depleting refrigerant gases and conversion to environmentally friendly chemistries required by the Montreal protocol and the Kyoto Accord are expected to drive market growth for new refrigeration lubricants. In addition, demand for refrigerators and air conditioners in developing countries is increasing, providing strong growth for the related lubricants.
In 2006, Croda acquired the refrigeration lubricants business as part of the Uniqema acquisition from Imperial Chemical Industries PLC. Following its acquisition, Croda determined that the refrigeration lubricants business was non-core.
The acquisition, which is subject to regulatory approvals, is anticipated to close early in the fourth quarter 2007. A small number of Croda employees are expected to become Lubrizol employees after the closing.
The Lubrizol Corporation (NYSE: LZ) is an innovative specialty chemical company that produces and supplies technologies that improve the quality and performance of our customers' products in the global transportation, industrial and consumer markets.
These technologies include lubricant additives for engine oils, other transportation-related fluids and industrial lubricants, as well as fuel additives for gasoline and diesel fuel. In addition, Lubrizol makes ingredients and additives for personal care products and pharmaceuticals; specialty materials, including plastics technology and performance coatings in the form of specialty resins and additives. Lubrizol's industry-leading technologies in additives, ingredients and compounds enhance the quality, performance and value of customers' products, while reducing their environmental impact.
With headquarters in Wickliffe, Ohio, The Lubrizol Corporation owns and operates manufacturing facilities in 20 countries, as well as sales and technical offices around the world. Founded in 1928, Lubrizol has approximately 6,800 employees worldwide. Revenues for 2006 were $4.0 billion. For more information, visit www.lubrizol.com.
FROM: Financial/Investor Contact Media Contact
Mark Sutherland David Cowen
440-347-1206 440-347-5333
Web Site: www.lubrizol.com
