Lubrizol to acquire Ohio-based natural ingredients producer Active Organics; acquisition to provide Lubrizol with stronger presence in market for natural ingredients for personal care industry
CLEVELAND and WICKLIFFE, Ohio
December 12, 2011
– Provides company entry into botanical extracts and natural performance ingredients markets
The Lubrizol Corporation announces that it has signed an agreement to purchase Active Organics, Inc., a leading manufacturer and supplier of naturally-derived specialty ingredients including botanical extracts and natural performance ingredients for the personal care industry. This acquisition complements Lubrizol's existing personal and home care product line, strengthening its strategy of providing high-value technology solutions to its global cosmetic customers.
Founded in 1981 by Michael Bishop and headquartered in the Dallas/Fort Worth Metroplex, Active Organics offers a wide range of botanical extracts and natural performance ingredients to leading producers of cosmetic products. Recognized Active Organics' brands include Actiphyte® and Actiplex® botanical extracts, ActiLipid® and ActiMatrix®.
"This acquisition provides Lubrizol with an enhanced presence in the natural ingredients market, which we view as a significant step in continuing to grow our personal and home care product portfolio," commented Rick Tolin, Lubrizol vice president and general manager, personal care and home care. "The joining of the two companies creates a portfolio of industry-leading technologies that will help make our customers more successful through expanded access to innovative ingredients, formulations and applications knowledge."
Active Organics works directly with key customers to identify new product opportunities and applications. The company uses its North American manufacturing and distribution platform to meet global product specifications, ensure superior product quality and provide customers reliability of supply while also catering to regional consumer preferences.
"Lubrizol is a known leader in the personal care industry with a strong commitment to investing in the technology, resources and global reach required to meet the demands of today's customers," stated Michael Bishop, president of Active Organics. "Joining with Lubrizol provides significant benefits and opportunities for our talented workforce, as well as our customers, and I am excited about our future together."
Lubrizol will be assuming all Active Organics employees. Once the transaction closes, Active Organics will become a wholly-owned subsidiary of Lubrizol Advanced Materials and retain the Active Organics name. Assets transferring include Active Organics' dedicated technology, know-how, application knowledge, intellectual property, trade names, customer lists and relationships, production capabilities and business base.
Financial terms of the agreement were not disclosed. The transaction, structured as a stock purchase, is expected to close by the end of 2011, subject to customary closing conditions.
About The Lubrizol Corporation
The Lubrizol Corporation, a Berkshire Hathaway company, is an innovative specialty chemical company that produces and supplies technologies to customers in the global transportation, industrial and consumer markets. These technologies include lubricant additives for engine oils, other transportation-related fluids and industrial lubricants, as well as fuel additives for gasoline and diesel fuel. In addition, Lubrizol makes ingredients and additives for personal care products and pharmaceuticals; specialty materials, including plastics technology; and performance coatings in the form of specialty resins and additives. Lubrizol's industry-leading technologies in additives, ingredients and compounds enhance the quality, performance and value of customers' products, while reducing their environmental impact.
With headquarters in Wickliffe, Ohio, The Lubrizol Corporation owns and operates manufacturing facilities in 17 countries, as well as sales and technical offices around the world. Founded in 1928, Lubrizol has approximately 7,000 employees worldwide. Revenues for 2010 were $5.4 billion. For more information, visit www.lubrizol.com.
About Active Organics, Inc.
As a pioneer in botanical extracts and natural performance ingredients for the personal care products industry, Active Organics, Inc. is recognized around the world for its technological development and consistently high quality products. From its headquarters outside Dallas, Texas, on any given day the company processes natural extracts and performance ingredients from more than 1000 plants, fruits, vegetables and herbs. Since its founding in 1981 by Michael Bishop, Active Organics has been dedicated to the research, development and production of cutting edge products. For more information, visit www.activeorganics.com.