Lubrizol Sells Food Ingredients and Industrial Specialties Businesses
Friday March 17, 10:41 am ET
CLEVELAND, March 17 /PRNewswire-FirstCall/ -- The Lubrizol Corporation announced today that it has entered into an agreement to sell its food ingredients and industrial specialties businesses (the Business) to an affiliate of Sun Capital Partners, Inc. (Sun Capital), a private investment firm with headquarters in Boca Raton, Florida. Keybanc Capital Markets advised Lubrizol on the transaction.
The Business consists of a fine chemicals group, a specialty polymers and additives group and a performance materials group. The Business' 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 the Business with the acquisition of Noveon International, Inc. in June 2004. The Business previously reported into the consumer specialties product line of the Noveon Specialty Chemicals segment. The 2005 sales for the Business were approximately $400 million.
Included in the sale are six manufacturing sites: Akron and Cincinnati, Ohio; Charlotte, North Carolina; Cheyenne, Wyoming; Henry, Illinois; and Kalama, Washington. 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.
About The Lubrizol Corporation
The Lubrizol Corporation 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; performance coatings in the form of specialty resins and additives; and additives for the food and beverage industry. 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 7,500 employees worldwide. In June 2004, Lubrizol acquired Noveon International, Inc. Revenues for 2005 were $4.0 billion. For more information, visit http://www.lubrizol.com.
About Sun Capital Partners, Inc.
Sun Capital Partners, Inc. is a leading private investment firm focused on leveraged buyouts, equity, debt, and other investments in market-leading companies that can benefit from its in-house operating professionals and experience. Sun Capital affiliates have invested in and managed more than 110 companies worldwide with combined sales in excess of $27 billion since Sun Capital's inception in 1995. Sun Capital has offices in: Boca Raton, Florida; Los Angeles, California; New York, New York; London, U.K.; and Shenzhen, China. For more information, visit http://www.suncappart.com.
Source: The Lubrizol Corporation
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