Wickliffe, Ohio -- Lubrizol Corp. has announced that it has acquired the thermoplastic polyurethane (TPU) business of Dow Chemical Co., having previously confirmed (see story 24 Dec) to Urethanes Technology International that the deal was about to go through.
Lubrizol did not say what it paid for the business, which will expand its Estane Engineered Polymers business. The Dow TPU business had 2007 revenues of about $85 million. The deal closed 31 Dec.
Located in La Porte, Texas, the business Lubrizol bought includes two key product lines: Pellethane TPU elastomers, used in footwear, medical tubing, automobiles and film; and Isoplast engineering thermoplastic polyurethane resins, which are known for their clarity, impact strength and chemical resistance.
Lubrizol claims to be a global leader in thermoplastic elastomers, marketing products under the Estane name. These engineered TPUs are used in film extrusion, tubing, cable jacketing, injection moulding, calendering and solution processes for applications such as textiles, wire and cable, hose and tube, optical, industrial, agriculture and others.
"Given Dow's strong TPU brand recognition in the US, 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, in a 5 Jan Lubrizol statement. "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."
Dow decided to exit the TPU business due to a re-focus on investment priorities and the lack of a strategic fit, said the statement.
"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," commented George Biltz, Dow corporate vice president, Strategic Development and Planning .
Lubrizol will take on about 40 full-time employees in the deal. Lubrizol said the Dow brand names will be retained and unified under the Estane Engineered Polymers business.