News Home
Quick Bites
News Archive
News Channel
Special Features
On AirNewsClassical
School Closings
WKSU Support
Funding for WKSU is made possible in part through support from the following businesses and organizations.

Akron Children's Hospital

Levin Furniture

Greater Akron Chamber

For more information on how your company or organization can support WKSU, download the WKSU Media Kit.

(WKSU Media Kit PDF icon )

Donate Your Vehicle to WKSU

Programs Schedule Make A Pledge Member BenefitsFAQ/HelpContact Us
Economy and Business

Warren Buffet eyes Northeast Ohio's Lubrizol
Wickliffe specialty chemicals company to be sold for nearly $10 billion

Morning Edition Host
Amanda Rabinowitz
Lubrizol has been headquarted in the Clevleand suburb of Wickliffe since 1928.
Courtesy of Lubrizol
Download (WKSU Only)
In The Region:

Billionaire investor Warren Buffet plans to buy Northeast Ohio’s specialty chemicals maker Lubrizol for nearly $10 billion dollars. Many analysts say the deal is surprising, but - at first glance - a good one for the company and the region.  

Click to listen

Other options:
Windows Media / MP3 Download (1:50)

Lubrizol has been headquartered in the Cleveland suburb of Wickliffe for 80 years and makes chemicals that go into lubricants used in everything from car engines to metalworking gear. Warren Buffet’s Berkshire Hathaway holding company plans to buy the company for $9.7 billion in cash, making it Buffet’s second-biggest acquisition in the past decade. Berkshire is paying $135 per share, which is nearly a 30-percent premium over Lubrizol’s closing price on Friday. Dmitry Silversteyn, an analyst with Longbow Research in Cleveland says Lubrizol is a strong, well-managed company that turned over $5.4 billion in revenue last year. But he says the stock has sold at a lower-than-industry pricing level – and its actual market value is around $145 a share.


Silversteyn: "For Berkshire it’s an opportunity to buy an industry-leading company at a significant discount. Even at the premium that they’re paying, I think it’s still a discount to the company’s fair value. And hopefully will be able to generate that value, or unlock that value for the benefit of Berkshire shareholders."


Silversteyn says that since Lubrizol is not being sold to another specialty chemicals company, there likely won’t be any job cuts and its management should remain intact. 


Silversteyn: "Berkshire Hathaway has paid the price and being the company that it is, is clearly intent to continue to grow this business and to allow it to reach its full potential certainly I don’t see it limiting the investments that the company was prepared to make to drive its business - if anything it may allow them to gain access to even more capital."


In a statement, Lubrizol called the deal a "transformative event," and said it would allow the company "to focus on long-term plans without the constraints of short-term public market requirements." 


Add Your Comment


E-mail: (not published, only used to contact you about your comment)


Page Options

Print this page

E-Mail this page / Send mp3

Share on Facebook

Stories with Recent Comments

Kasich campaign evokes dark images of a Trump presidency

Backers of legalizing marijuana in Ohio promise to be back in 2016
We should be aloud to grow more than 4 plants and not have to register with the state considering it will be a free market.

Akron says it's had no second thoughts about welcoming refugees
What business does Councilman Neal own on North Hill? I'd love to support him. I am so glad to have the refugees in our neighborhood. I have lived here for 25 ...

Scarborough says the University of Akron is trying to rebuild relationships
In order for the University of Akron to grow and become a desirable place for students across Ohio and elsewhere, it must address the crime problem in the Akron...

Ohio Sen. Cliff Hite wants to end pay-to-play sports fees at Ohio's schools
You can bet Hite and Husted will also rush to the rescue of the Academic Challenge team, the speech-and-debate squad, the Science Olympians and the chess club. ...

Ohio lawmakers consider new gun bills
States that have gun restrictions/cities have reduced gun violence is false. CHICAGO has some of the toughest gun laaws/restrictions but yet fun violence is off...

Cleveland's public transit system considers fare increase for 2016
I work with individuals with disabilities. Yes some of my folks need more help than the average person. As a whole, the group I work with however can manuver ju...

Community group sues to re-open part of Wadsworth hospital
My father was part of the founding group of citizens which started the "new" Wadsworth/Rittman Hospital. For some reason the leadership for the future of the ho...

The Cleveland Museum of Art presents painters who loved their gardens
brilliant masterpiece, Greetings from

Copyright © 2015 WKSU Public Radio, All Rights Reserved.

In Partnership With:

NPR PRI Kent State University

listen in windows media format listen in realplayer format Car Talk Hosts: Tom & Ray Magliozzi Fresh Air Host: Terry Gross A Service of Kent State University 89.7 WKSU | NPR.Classical.Other smart stuff. NPR Senior Correspondent: Noah Adams Living on Earth Host: Steve Curwood 89.7 WKSU | NPR.Classical.Other smart stuff. A Service of Kent State University