The Lubrizol Corporation today announces that it has signed an agreement to purchase Chemtool Incorporated, a leading global manufacturer and supplier of custom formulated greases to the lubricant industry. This acquisition will expand the Lubrizol Additives Custom Solutions business, strengthening its ability to meet the needs of its global customers. The deal is expected to close in the fourth quarter of 2011, following the completion of regulatory approvals. The purchase price was not disclosed.
Founded in 1963, and headquartered in Rockton, IL, Chemtool offers a wide variety of lubricating greases to meet customer needs in markets ranging from aviation to transportation. The company has focused on providing its customers innovative technologies and services that improve performance, extend service life, support process improvements and reduce the overall cost of running their facilities.
The transaction supports Lubrizol's vision to help its customers be more successful and is consistent with its Lubrizol Additives Custom Solutions business model. With an ever-growing number of customers choosing to outsource the manufacture of their grease products, the addition of Chemtool will allow customers access to high quality grease products while providing them the opportunity to focus their time and resources on other core products.
With Lubrizol's global presence, Lubrizol says the acquisition enhances Chemtool's ability to serve its current customers in their operations outside North America. Further, it says, customers will be assured delivery of high quality, consistent products around the world.
Commenting on the transaction, James L. Hambrick, Lubrizol chairman, president and chief executive officer said, "The combination of Lubrizol's expertise in additive technology along with Chemtool's knowledge in manufacturing grease is a natural fit which we believe will lead to more diverse product offerings for our global customers."
"This is an exciting time and significant milestone for Chemtool. Our customers will continue to receive the same level of excellent service provided by Chemtool but now with the added technology, investment resources and global reach available from Lubrizol," stated Jim Athans, Chemtool owner and president.
Chemtool will continue to operate independently and will retain the Chemtool name.
About Lubrizol: With headquarters in Wickliffe, Ohio, The Lubrizol Corporation, a Berkshire Hathaway company, is an innovative specialty chemical company that produces and supplies technologies to customers 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.
SOURCE: The Lubrizol Corporation