Lubrizol To Buy Active Organics

The Lubrizol Corporation will acquire 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. Financial terms were not disclosed.

The move complements Lubrizol’s existing personal and home care product line, strengthening its strategy of providing high-value technology solutions to its global cosmetic customers, according to the company.

“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,” said 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 assume 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.