Plastics aren't the focus, but the recently announced $9.7 billion purchase of specialty chemicals maker Lubrizol Corp. by Berkshire Hathaway Inc. is the subject of intense media scrutiny today. David Sokol, a top Berkshire Hathaway executive, has resigned amidst controversy involving his purchase of Lubrizol shares prior to mentioning the company to Warren Buffett as a takeover candidate. For those who don't recall, here's the plastics angle: Lubrizol generates about 30 percent of its sales and about 20 percent of its operating income from its Advanced Materials unit, which includes its market-leading Estane-brand thermoplastic polyurethane. Lubrizol acquired the business -- then known as Noveon -- for $1.4 billion in 2004 from private equity firm AEA Investors Inc. Scott Suttell, my colleague at Crain's Cleveland Business, covers the controversy in his blog today with this post, "Berkshire Hathaway intrigue makes deal for Lubrizol Corp. a talker."
Berkshire-Lubrizol deal in the spotlight
Do you have an opinion about this story? Do you have some thoughts you'd like to share with our readers? Plastics News would love to hear from you. Email your letter to Editor at [email protected]