Warren Buffett’s Berkshire Hathaway in March 2011 agreed to buy Lubrizol, the world’s largest producer of lubricant additives. Berkshire agreed to buy Lubrizol for about $9 billion in the cash-flush investor’s second-biggest acquisition in the past five years. Berkshire will pay $135 a share in cash. The purchase includes an additional $700 million of net debt.
Buffett is using his almost $40 billion pile of cash to pursue bigger acquisitions after Berkshire generated about $1 billion in free cash flow a month in 2010.
The Lubrizol purchase marked Warren Buffett’s second largest purchase since 2006 after his agreement in 2009 to buy Burlington Northern Santa Fe railroad during the recession.
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