Berkshire Hathaway's Lubrizol unit buying oilfield chemicals business for at least $750M

OMAHA, Neb. – Warren Buffett’s specialty chemical subsidiary Lubrizol will spend at least $750 million to acquire businesses that make oilfield chemicals and drilling fluids.

Berkshire Hathaway Inc.’s Lubrizol says it expects to acquire two businesses from Weatherford International PLC by the end of 2014. Lubrizol will pay at least $750 million, but the price could grow to $825 million if the acquired businesses perform well.

Lubrizol, which is based in Wickliffe, Ohio, says it will create a new business unit focused on oilfield solutions once it acquires the Engineered Chemistry and Integrity Industries units from Swiss-based Weatherford.

Engineered Chemistry operates 10 sites mostly in North America that supply additives and fluids for a variety of oilfield activities. Integrity Industries has 14 locations that supply drilling fluids to mining companies. Both are based in Texas.