Lubrizol Sells Active Pharmaceutical Ingredient
and Intermediate Compounds Business
Friday March 31, 9:22 am ET
CLEVELAND, March 31 /PRNewswire-FirstCall/ -- The Lubrizol Corporation announced today that it has agreed to sell its active pharmaceutical ingredient and intermediate compounds business, with facilities in Raubling, Germany and Chennai, India (A&I). The purchasers are Auctus Management GmbH (Auctus), a German private equity firm located in Munich, Germany, and the current management of the active pharmaceutical ingredient business. KeyBanc Capital Markets advised Lubrizol on the transaction.
This is Lubrizol's fifth and last planned divestiture since it announced its intent in July to market non-core businesses with combined revenues of $500 million. A&I has been part of Lubrizol's consumer specialties product line in the Specialty Chemicals segment. A&I management anticipates that 2006 sales revenues will be approximately $30 million U.S. Terms of the sale were not disclosed.
A&I develops and produces active pharmaceutical ingredients and advanced intermediates that are marketed to proprietary and generic drug manufacturers worldwide.
According to Don Bogus, President of Noveon, Inc., Lubrizol's Specialty Chemicals segment, "This transaction is very positive for the buyers as well as the employees of A&I. It gives A&I the opportunity to continue to leverage its expertise in chemical processing technologies to develop new products."
Auctus manages private equity funds from institutional investors. Its strategy is to invest in mid-sized companies in Germany and Austria, with a focus on management buyouts. Auctus plans to further invest in the A&I business to achieve significant organic growth over the coming years.
The closing of the transaction is expected to occur in early May.
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.
Source: The Lubrizol Corporation
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