The Lubrizol businesses consist of a fine chemicals group, a specialty polymers and additives group, and a performance materials group. The products have applications in the following markets: food and beverage; personal care and intermediates; textiles, paper, tires and industrial rubber; and adhesives. Lubrizol acquired most of these businesses with the acquisition of Noveon International Inc. in June 2004. They previously reported into the consumer specialties product line of the Noveon Specialty Chemicals segment. The 2005 sales for these businesses were approximately $400 million.
Included in the sale are six manufacturing sites: Akron and Cincinnati, Ohio; Charlotte, N.C.; Cheyenne, Wyo.; Henry, Ill.; and Kalama, Wash. The purchaser intends to retain all of the employees, numbering approximately 625, at these locations.
"This sale will allow the food ingredients and industrial specialties businesses to stand on their own and grow through increased management focus, capital investments and acquisitions. The purchaser views this as a good opportunity and expects to add resources to improve and position the business for long-term growth. I have been very pleased with the performance of the business and the strength of the management team over the past 21 months of Lubrizol's ownership," said James Hambrick, Lubrizol's chairman, president and CEO.
This is Lubrizol's fourth and largest divestiture since it announced in July 2005 its strategy to divest non-core businesses with combined revenues of $500 million in order to focus on building its personal care, performance coatings, specialty materials and lubricant additives businesses.
Closing, which is anticipated in the second quarter, is subject to regulatory approvals.
