Lubricant maker Lubrizol Corporation is buying the refrigeration lubricants division of Croda International PLC for an undisclosed sum, though Lubrizol noted this segment of Croda’s business generated revenues of about $84 million over the last 12 months.
The deal includes Croda’s polyol ester and alkyl benzene refrigeration lubricant technology, the Emkarate and Icematic brand names, customer lists, manufacturing know-how and complementary intellectual property, but not manufacturing facilities, stressed Wickliffe, OH-based Lubrizol.
"This business complements our existing refrigeration lubricants business, which is served by our subsidiary, CPI Engineering Services, Inc., headquartered in Midland, MI,” said Val Pakis, Lubrizol vp of industrial products. “This is an example of our strategy to grow through bolt-on acquisitions that enhance existing product lines. Also, phase out of ozone-depleting refrigerant gases and conversion to environmentally friendly chemistries required by the Montreal Protocol and the Kyoto Accord are expected to drive market growth for new refrigeration lubricants.”He added that the sale, subject to regulatory approvals, should close early in the fourth quarter and that a small number of Croda employees are expected to become Lubrizol employees after the closing.