Lubrizol sells API and intermediate compounds business

US specialty chemical and lubricants company, Lubrizol Corporation, of Cleveland, OH, has agreed to sell its active pharmaceutical ingredient and intermediate compounds business (A&I), to Auctus Management, a German private equity firm located in Munich, and the current management of the active pharmaceutical ingredient business.

US specialty chemical and lubricants company, Lubrizol Corporation, of Cleveland, OH, has agreed to sell its active pharmaceutical ingredient and intermediate compounds business (A&I), to Auctus Management, a German private equity firm located in Munich, and the current management of the active pharmaceutical ingredient business.

This is Lubrizol's fifth and last planned divestiture since it announced its intent to sell its non-core businesses.

A&I has been part of Lubrizol's consumer specialties product line in the Specialty Chemicals segment. It develops and produces active pharmaceutical ingredients and advanced intermediates that are marketed to proprietary and generic drug manufacturers worldwide and has facilities in Raubling, Germany and Chennai, India.

A&I management anticipates that 2006 sales revenues will be approximately US $30m. Terms of the sale were not disclosed.

Don Bogus, president of Lubrizol's Specialty Chemicals segment, Noveon, said: "This transaction is very positive for the buyers as well as the employees of A&I. It gives A&I the opportunity to continue to leverage its expertise in chemical processing technologies to develop new products."

Auctus manages private equity funds from institutional investors. Its strategy is to invest in midsized companies in Germany and Austria, with a focus on management buyouts. Auctus plans to further invest in the A&I business to achieve significant organic growth over the coming years.

The closing of the transaction is expected to occur in early May.

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