10.10.05
The Lubrizol Corporation announced that it has signed a definitive agreement to purchase Noveon International, Inc. in a transaction valued at $1.84 billion. The acquisition is subject to regulatory approval and is expected to close within three months.
The addition of Noveon, a privately-held Cleveland, OH-based specialty chemical company with $1.2 billion in revenues for the last 12 months, will create a combined company with approximately $3.2 billion in annualized revenues. It will complement Lubrizol’s existing businesses in fluid technologies and, in particular, it will expand the company’s application base within the personal care and specialty coatings markets.
The transaction value includes a cash payment of approximately $920 million for equity and the assumption of net debt, which was approximately $920 million as of Dec. 31, 2003.
“The acquisition of Noveon will allow us to carry out our vision of enhancing our overall corporate growth rate,” said W. G. Bares, chairman and CEO of Lubrizol. “Since 2000, we have made eight smaller acquisitions, with cumulative annualized revenues of $200 million. These acquisitions successfully expanded our product platform beyond our traditional business of fluid technologies for transportation (FTT) into fluid technologies for industry (FTI).”
“Noveon is a well-run company,” said Lubrizol’s president James L. Hambrick, who succeeded Mr. Bares as CEO at the company’s April 26 annual meeting of shareholders. “It holds leading positions in a number of high-growth markets and will give us the added breadth we need to leverage our technology into new markets and applications. Our business will be better balanced following the acquisition. Approximately one-half of our company will consist of Lubrizol’s traditional business, which concentrates on lubricant additives for the transportation market and is a strong, stable and cash-generating business.”
“The strengths of Noveon and Lubrizol complement each other well,” said Steve Demetriou, Noveon’s president and CEO. “Since our inception three years ago, Noveon has transformed itself into a leading specialty chemical company, revitalized its businesses and reinvigorated its new product pipeline. The value we have created at Noveon is reflected by our recent accomplishments, which have included eight consecutive quarters of year-over-year sales growth, relentless pursuit of productivity initiatives, successful bolt-on acquisitions and global expansion.”
Other synergies will include a stronger geographic platform. Lubrizol’s coatings presence is stronger in Europe, while Noveon’s coatings business is stronger in North America. Both companies also have expanding positions in China and Southeast Asia. The acquisition is also expected to enhance R&D and product introduction capabilities.
The addition of Noveon, a privately-held Cleveland, OH-based specialty chemical company with $1.2 billion in revenues for the last 12 months, will create a combined company with approximately $3.2 billion in annualized revenues. It will complement Lubrizol’s existing businesses in fluid technologies and, in particular, it will expand the company’s application base within the personal care and specialty coatings markets.
The transaction value includes a cash payment of approximately $920 million for equity and the assumption of net debt, which was approximately $920 million as of Dec. 31, 2003.
“The acquisition of Noveon will allow us to carry out our vision of enhancing our overall corporate growth rate,” said W. G. Bares, chairman and CEO of Lubrizol. “Since 2000, we have made eight smaller acquisitions, with cumulative annualized revenues of $200 million. These acquisitions successfully expanded our product platform beyond our traditional business of fluid technologies for transportation (FTT) into fluid technologies for industry (FTI).”
“Noveon is a well-run company,” said Lubrizol’s president James L. Hambrick, who succeeded Mr. Bares as CEO at the company’s April 26 annual meeting of shareholders. “It holds leading positions in a number of high-growth markets and will give us the added breadth we need to leverage our technology into new markets and applications. Our business will be better balanced following the acquisition. Approximately one-half of our company will consist of Lubrizol’s traditional business, which concentrates on lubricant additives for the transportation market and is a strong, stable and cash-generating business.”
“The strengths of Noveon and Lubrizol complement each other well,” said Steve Demetriou, Noveon’s president and CEO. “Since our inception three years ago, Noveon has transformed itself into a leading specialty chemical company, revitalized its businesses and reinvigorated its new product pipeline. The value we have created at Noveon is reflected by our recent accomplishments, which have included eight consecutive quarters of year-over-year sales growth, relentless pursuit of productivity initiatives, successful bolt-on acquisitions and global expansion.”
Other synergies will include a stronger geographic platform. Lubrizol’s coatings presence is stronger in Europe, while Noveon’s coatings business is stronger in North America. Both companies also have expanding positions in China and Southeast Asia. The acquisition is also expected to enhance R&D and product introduction capabilities.