Berkshire Hathaway announced it's buying Lubrizol, which among other things makes additives for fuel and oil, for about $9.7 billion -- $135 per share in an all-cash transaction, one of the largest acquisitions in Berkshire Hathaway history.


The price represents a 28 percent premium over Lubrizol's closing price on Friday, March 11, 2011, and is 18 percent higher than Lubrizol's all-time high share closing price. It's the biggest deal for billionaire Warren Buffett's company since it bought Burlington Northern Santa Fe for more than $26 billion in 2009. Another recent deal was Marmon Holdings, whose Marmon Highway Technologies makes trailers, fifth wheels, brakes and more for the heavy-duty trucking industry.

The Lubrizol deal came just two weeks after Buffett told his shareholders he was on the hunt for acquisitions

"Lubrizol is exactly the sort of company with which we love to partner - the global leader in several market applications run by a talented CEO, James Hambrick," said Warren Buffett, Berkshire Hathaway chief executive officer. "Our only instruction to James - just keep doing for us what you have done so successfully for your shareholders."

Buffett was referring to James Hambrick, Lubrizol chairman, president and chief executive officer of Lubrizol.

Berkshire Hathaway and Lubrizol expect the transaction to be completed during the third quarter of 2011. Lubrizol will operate as a subsidiary of Berkshire Hathaway, will remain located at its Wickliffe, Ohio, headquarters and will continue to be led by its current management team. It owns and operates manufacturing facilities in 17 countries, as well as sales and technical offices around the world. Founded in 1928, Lubrizol has approximately 6,900 employees worldwide. Revenues for 2010 were $5.4 billion.