Lubrizol Was The Elephant (LZ, BRK-A)

Lubrizol Corporation LZ may not have been the Zebra, but it sure looks like Warren Buffet got his elephant.

Berkshire Hathaway (NYSE: BRK-A) has acquired Lubrizol for $9 billion in cash, which makes the chemicals company one of Berkshire's largest acquisitions in its storied history.

Berkshire said it would acquire Lubrizol at $135 per share, about a 28% premium to Lubrizol's closing price on Friday. The deal includes assumption of $0.7 billion of debt.

“Lubrizol is exactly the sort of company with which we love to partner – the global leader in several market applications run by a talented CEO, James Hambrick,” said Warren Buffett, Berkshire Hathaway chief executive officer. “Our only instruction to James – just keep doing for us what you have done so successfully for your shareholders.”

James Hambrick, Lubrizol chairman, president and CEO said, “This transaction provides compelling value to our shareholders and is a clear endorsement of the growth and diversification success Lubrizol has achieved. We are very excited to have the opportunity to become part of the Berkshire Hathaway family. We believe its philosophy of supporting long-term global investments in technology, assets and employees will enhance execution of our growth strategies. Such a long-term commitment is more important than ever in today's global economy to deliver true market-leading products and services for our customers.”

Lubrizol makes chemicals for pharmaceutical companies, fuel additives for gasoline and diesel and other ingredients for the transportation sector.

Citigroup Inc. and Evercore Partners advised Lubrizol, while Munger, Tolles & Olson LLP represented Berkshire Hathaway.