Lubrizol to acquire Croda''s refrigeration lubricants business

03 September 2007

Specialty chemical company Lubrizol Corporation (NYSE: LZ) has reached an agreement to acquire Croda International Plc''s refrigeration lubricants business. This business had revenues of approximately $84 million over the last 12 months.

The acquisition includes Croda''s polyolester and alkylbenzene refrigeration lubricant

technology, Emkarate and Icematic brand names, customer lists, manufacturing know-how and complementary intellectual property. No manufacturing facilities are included in the transaction.

"This business complements our existing refrigeration lubricants business, which is served by our subsidiary, CPI Engineering Services, Inc., headquartered in Midland, Michigan. This is an example of Lubrizol''s strategy to grow through bolt-on acquisitions that enhance existing product lines," stated Val Pakis, Lubrizol Additives'' vice president of industrial products.

Phase out of ozone-depleting refrigerant gases and conversion to environmentally friendly chemistries required by the Montreal protocol and the Kyoto Accord are expected to drive market growth for new refrigeration lubricants. In addition, demand for refrigerators and air conditioners in developing countries are increasing, providing strong growth for the related lubricants.

In 2006, Croda acquired the refrigeration lubricants business as part of the Uniqema acquisition from Imperial Chemical Industries PLC. Following its acquisition, Croda determined that the refrigeration lubricants business was non-core.