Industry News

Lubrizol Acquires Dow Thermoplastic Polyurethane Business

Published on 2009-01-06. Author : SpecialChem

CLEVELAND, OH, -- The Lubrizol Corporation announced that it has acquired the thermoplastic polyurethane (TPU) business from The Dow Chemical Company, a $54 billion diversified chemical company. This acquisition, structured as a sale and purchase of assets, will expand Lubrizol's Estane® Engineered Polymers business. The Dow TPU business had 2007 revenues of approximately $85 million. The deal closed on December 31, 2008.

Located in La Porte, TX, Dow's TPU product line spans the continuum between elastomeric and rigid TPU properties. The two key brands representing the business are:
  • PELLETHANE™ Thermoplastic Polyurethane Elastomers, used in a variety of high-value elastomer applications including footwear, medical tubing, automotive, film and industrial/engineering applications; and
  • ISOPLAST™ Engineering Thermoplastic Polyurethane Resins, used in a variety of niche, specialty applications that require its unique combination of high-end engineering plastic properties that include clarity, impact strength and chemical resistance.

With 50 years of industry experience, Lubrizol is a global leader in thermoplastic elastomers, marketing products under the Estane Thermoplastic Polyurethane brand name. Estane TPU is an engineered, highly versatile thermoplastic elastomer that is utilized in film extrusion, tubing, cable jacketing, injection molding, calendaring and solution processes for applications such as textiles, wire and cable, hose and tube, optical, industrial, agriculture and others.

"We are excited to be adding Dow's TPU capabilities and products to our existing Estane Engineered Polymers business. Given Dow's strong TPU brand recognition in the U.S., this addition further supports our strategy of growth through geographic expansion as it will allow us to introduce new products and technology to international markets where Dow's TPU business has had limited penetration," said Mike Vaughn, Lubrizol vice president, Estane Engineered Polymers. "The acquisition continues to strengthen and expand our product portfolio and provides us access into new end uses, such as niche medical applications, which we believe will benefit our customers worldwide."

Although Dow has demonstrated proven product development capabilities, strong customer relationships and a solid industry reputation over the years, it has decided to exit its TPU business due to a re-focus on investment priorities and the lack of a strategic fit.

"I am pleased that this transaction with Lubrizol will provide our experienced and knowledgeable workforce, as well as our customers, the benefit of increased scale to support additional investment in new and enhanced technologies, products and services," stated George Biltz, Dow Corporate Vice President, Strategic Development and Planning . "I am sure our business and our customers will be in good hands." The move ensures that Dow's existing customers will continue to be supplied with the company's products.

The agreement includes all commercial, production and research and development assets of the Dow TPU business. Lubrizol will be assuming approximately 40 full-time employees. All Dow TPU products will be transitioned immediately to Lubrizol. The Dow brand names will be retained and unified under the Estane Engineered Polymers business.

Financial terms of the agreement were not disclosed.

About The Lubrizol Corporation

The Lubrizol Corporation is an innovative specialty chemical company that produces and supplies technologies that improve the quality and performance of our customers' products 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 19 countries, as well as sales and technical offices around the world. Founded in 1928, Lubrizol has approximately 6,900 employees worldwide. Revenues for 2007 were $4.5 billion.

About Dow

With annual sales of $54 billion and 46,000 employees worldwide, Dow is a diversified chemical company that combines the power of science and technology with the "Human Element" to constantly improve what is essential to human progress. The company delivers a broad range of products and services to customers in around 160 countries, connecting chemistry and innovation with the principles of sustainability to help provide everything from fresh water, food and pharmaceuticals to paints, packaging and personal care products. References to "Dow" or the "Company" mean The Dow Chemical Company and its consolidated subsidiaries unless otherwise expressly noted.

Forward Looking Statement

This press release contains forward-looking statements within the meaning of the federal securities laws. As a general matter, forward-looking statements relate to anticipated trends and expectations rather than historical matters. Forward-looking statements are subject to uncertainties and factors relating to the company's operations and business environment that are difficult to predict and may be beyond the control of the company. Such uncertainties and factors may cause actual results to differ materially from those expressed or implied by forwardlooking statements. Uncertainties and risk factors that could affect the future performance of the company and cause results to differ from the forward-looking statements in this press release include, but are not limited to, the company's ability to raise prices in an environment of increasing raw material costs; conditions affecting the company's customers, suppliers and the industries that it serves; competitors' responses to the company's products; the increased leverage resulting from the financing of the Noveon International, Inc. acquisition; changes in accounting, tax or regulatory practices or requirements; and other factors that are set forth in the company's most recently filed reports with the Securities and Exchange Commission. The forward-looking statements contained herein represent the company's judgment as of the date of this release and it cautions readers not to place undue reliance on such statements. The company assumes no obligations to update the statements contained in this release.

Source: Lubrizol Corporation

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