The Lubrizol Corp. announced today that it has acquired the thermoplastic polyurethane (TPU) business from The Dow Chemical Co., 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 Dec. 31, 2008.
Located in La Porte, Texas, 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.
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, according to Lubrizol.
“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.
Financial terms of the agreement were not disclosed.
For more information, visit: http://www.lubrizol.com.