Coatings World - April 2011

Berkshire Hathaway acquires Lubrizol

Berkshire Hathaway Inc. and The Lubrizol Corporation have formed a definitive agreement for Berkshire Hathaway to acquire 100 percent of outstanding Lubrizol shares for $135 per share in an all-cash transaction. The transaction, which was unanimously approved by the board of directors of each company, is valued at approximately $9.7 billion, including approximately $0.7 billion in net debt, making it one of the largest acquisitions in Berkshire Hathaway history. This price represents a 28 percent premium over Lubrizol’s latest closing price and is also 18 percent higher than Lubrizol’s all-time high share closing price.

“Lubrizol is exactly the sort of com-
pany with which we love to partner. A
global leader in several market applica-
tions run by a talented CEO, James
Hambrick,” said Warren Buffett, Berk-
shire Hathaway CEO. “Our only in-
struction to James is to just keep doing
for us what you have done so success-
fully for your shareholders.”
After the close of the transaction, Lu-
brizol will operate as a subsidiary of Berk-
shire Hathaway and will remain located
at its Wickliffe, Ohio, headquarters and
will continue to be led by its current man-
agement team.

BASF opens new epoxy composite lab in NY BASF has opened a new epoxy composite laboratory at its technical center in Tarry-town, NY. The new epoxy composite laboratory brings together BASF’s technical capabilities for epoxy systems, under its Baxxodur brand to support the development of new epoxy composite applications. It offers a wide range of facilities for simulating a customer’s production processes with Baxxodur resin systems and the ability to develop tailored solutions for customer’s specific process conditions. In addition, BASF has increased its technical support team with experts who provide on-site customer support.

Oxea builds new carboxylic acids unit Oxea recently announced that due to continued strong growth in strategic, high-value segments, the company will build a new carboxylic acids unit in Oberhausen, Germany, that will come on stream by late 2012. The new unit will boost Oxea’s global carboxylic acids production capacity by an additional 40 percent on top of the already announced capacity expansion projects becoming effective end of 2011. Main driver for these capacity increases is a growing demand for synthetic fatty acids in segments such as energy-efficient lubricant esters and specialty phthalate-free plasticizers. In 2010 Oxea expanded the production capacity of its existing carboxylic acids units, and in December 2010 Oxea announced another increase by 20 percent of its capacities scheduled to be completed towards the end of 2011. Subject to approval by the relevant authorities, the new carboxylic acids unit is planned to come on stream by late 2012. Oxea is a global manufacturer of Oxo intermediates and Oxo derivatives such as alcohols, polyols, carboxylic acids, specialty esters, and amines. These products are used for the production of high-quality coatings, lubricants, cosmetics and pharmaceutical products, flavorings and fragrances, printing inks and plastics. In 2010, Oxea generated revenue of about €1.4 billion with approximately 1,330 employees in Europe, the Americas and Asia.

Buhler appoints CheMarCo as Oxylink distributor in Southeast U.S. Buhler and CheMarCo have signed a distribution agreement for the additive series Oxylink of Buhler. CheMarco will represent the specialty additive in its territory, the Southeastern states of the U.S. Oxylink is an additive designed for waterborne resin systems, such as coatings, paints, inks, adhesives and sealants. The product is manufactured by the Nanotechnology

business unit of Buhler and targets industrial producers. With CheMarCo, Buhler has been able to win a premier distributor for specialty chemical raw materials. Buhler is convinced that the focus on technical expertise of its new partner will be the decisive factor for a successful expansion of its Oxylink business.

Oxylink is a performance additive that improves waterborne resin systems in the areas of solvent resistance, blocking resistance, humidity resistance and drying time. With its Oxylink technology, Buhler is aiming at a sustainable development of environmentally friendly, low-VOC coating systems.

“CheMarCo is proud to partner with Buhler to bring a new generation of innovative additives to our customers,” said Martin Carter, president of CheMarCo.” We are excited about the new venture and are looking forward to developing new business for the Oxylink products.”

CPS Color acquires dispensing
equipment specialist Lenteq

CPS Color Group Oy, a provider of integrated paint tinting solutions, has acquired Lenteq Industries B.V., a specialist provider of dispensing and mixing equipment based in Lisserbroek, Netherlands. It has been acquired from Stibbe Management B.V., a privately held investment group, based in the Netherlands. Lenteq has an annual turnover of approximately € 3 million.

Lenteq’s strengths in innovative piston pump technology are set to enhance and complete CPS Color’s product portfolio, the company said. CPS Color is the only supplier to offer end-to-end tinting solutions including colorants (liquid pigments), dispensing and mixing equipment, software and color marketing tools, as well as a global sales and support network. Through its network, CPS Color is set to expand the sales of the Lenteq technology further.