Which specialty chemical company did Berkshire Hathaway acquire in 2011? Lubrizol is the answer.
Berkshire Hathaway announced its agreement to acquire Lubrizol on March 14, 2011, and completed the all-cash transaction on September 16, 2011. The purchase was valued at approximately $9.7 billion, including Lubrizol’s net debt, and made the chemical company a wholly owned Berkshire subsidiary.
Lubrizol develops specialty chemicals and technologies for transportation, industrial and consumer markets. Its products include additives for engine oils, driveline fluids and industrial lubricants, as well as materials used in coatings, polymers, personal care and other applications. The company remained headquartered in Wickliffe, Ohio, after the acquisition.
PPG, Dow and 3M are also major chemical or materials companies, which makes them plausible distractors, but none is the company named in Berkshire’s 2011 acquisition. Lubrizol is sometimes confused with a conventional oil company because of its lubricant additives; it does not primarily produce fuel or motor oil itself.