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.

The acquisition, which is subject to regulatory approvals, is anticipated to close early in the fourth quarter 2007. A small number of Croda employees are expected to become Lubrizol employees after the closing.

The Lubrizol Corporation produces and supplies technologies that include lubricant additives for engine oils, other transportation-related fluids and industrial lubricants, as well as fuel additives for gasoline and diesel fuel in the global transportation, industrial and consumer markets.

In addition, Lubrizol makes ingredients and additives for personal care products and harmaceuticals; specialty materials, including plastics technology and performance coatings in the form of specialty resins and additives.

Founded in 1928, Lubrizol''s 2006 revenues were $4.0 billion.