Lubrizol Sells Engine Control Systems Business

CLEVELAND, Dec. 29 /PRNewswire-FirstCall/ -- The Lubrizol Corporation announced today that it has signed an agreement for the sale of its Engine Control Systems (ECS) business, with facilities located in Canada, the U.S. and Sweden, to CapitalWorks, an equity firm based in Cleveland, Ohio. Grace Matthews, Inc. advised Lubrizol on the transaction.

This is Lubrizol's third divestiture since it announced its intent in July to market non-core businesses with combined revenues of $500 million. ECS, with current annual sales of approximately $24 million, was part of Lubrizol's services and equipment product line in the Lubricant Additives segment. Terms of the combination stock and asset sale were not disclosed.

ECS designs and manufacturers exhaust aftertreatment performance systems that significantly reduce harmful emissions in mining, materials handling and off-road vehicles and equipment, in stationary engines, and in truck and bus fleets. Products are sold as original equipment to diesel engine manufacturers or as retrofit devices for older diesel vehicles and equipment.

Steve Kirk, President of Lubrizol Additives, said, "Lubrizol is very pleased that ECS will remain intact and continue to function in its current form. CapitalWorks appreciates ECS's pioneering technology in emissions control aftertreatment devices that promote cleaner air. The domestic and international growth potential in this emerging market area, coupled with ECS's strong management team, made this acquisition very attractive to CapitalWorks."

The closing is anticipated to take place by year end.

The Lubrizol Corporation is an innovative specialty chemical company that produces and supplies technologies that improve the quality and performance of our customers' products in the global transportation, industrial and consumer markets. These technologies include lubricant additives for engine oils, other transportation-related fluids and industrial lubricants, as well as fuel additives for gasoline and diesel fuel. In addition, Lubrizol makes ingredients and additives for personal care products and pharmaceuticals; specialty materials, including plastics technology; performance coatings in the form of specialty resins and additives; and additives for the food and beverage industry. Lubrizol's industry-leading technologies in additives, ingredients and compounds enhance the quality, performance and value of customers' products, while reducing their environmental impact.

With headquarters in Wickliffe, Ohio, The Lubrizol Corporation owns and operates manufacturing facilities in 21 countries, as well as sales and technical offices around the world. Founded in 1928, Lubrizol has more than 7,600 employees worldwide. In June 2004, Lubrizol acquired Noveon International, Inc. Revenues for the first nine months of 2005 were $3.0 billion. With Noveon, Lubrizol generated annual pro forma revenues of $3.7 billion in 2004 and $3.2 billion in 2003. For more information, visit http://www.lubrizol.com/.