Berkshire May Seek More Acquisitions

Berkshire Hathaway is considering more chemical acquisitions following its purchase of specialty chemical maker Lubrizol last September. “Lubrizol will have many opportunities for ‘bolt-on’ acquisitions in the specialty chemical field,” Berkshire Chairman Warren E. Buffett wrote in his annual letter to shareholders. He pointed out that Lubrizol has acquired three firms, for a total of $493 million, since Berkshire took over: thermoplastic polyurethanes maker Merquinsa, botanical extracts supplier Active Organics, and grease formulator Chemtool. Buffett also asserted his confidence in Lubrizol CEO James L. Hambrick, calling him “a disciplined buyer and a superb operator.” Buffett notes that he is “eager to expand [Hambrick’s] managerial domain.”