The Lubrizol Corporation has signed an agreement to purchase Active Organics, Inc., a manufacturer and supplier of naturally derived specialty ingredients including botanical extracts and natural performance ingredients for the beauty industry. This acquisition complements Lubrizol's existing beauty and home care product line, strengthening its strategy of providing high-value technology solutions to its global cosmetic customers.
Founded in 1981 by Michael Bishop and headquartered in the Dallas/Fort Worth area, Active Organics offers a range of botanical extracts and natural performance ingredients to leading producers of beauty products. Recognized Active Organics' brands include Actiphyte and Actiplex botanical extracts, ActiLipid and ActiMatrix.
"This acquisition provides Lubrizol with an enhanced presence in the natural ingredients market, which we view as a significant step in continuing to grow our personal and home care product portfolio," commented Rick Tolin, Lubrizol vice president and general manager, personal care and home care. "The joining of the two companies creates a portfolio of industry-leading technologies that will help make our customers more successful through expanded access to innovative ingredients, formulations and applications knowledge."
"Lubrizol is a known leader in the personal care industry with a strong commitment to investing in the technology, resources and global reach required to meet the demands of today's customers," stated Michael Bishop, president of Active Organics. "Joining with Lubrizol provides significant benefits and opportunities for our talented workforce, as well as our customers, and I am excited about our future together."
Lubrizol will be assuming all Active Organics employees. Once the transaction closes, Active Organics will become a wholly owned subsidiary of Lubrizol Advanced Materials and retain the Active Organics name. Assets transferring include Active Organics' dedicated technology, know-how, application knowledge, intellectual property, trade names, customer lists and relationships, production capabilities and business base.
Financial terms of the agreement were not disclosed. The transaction, structured as a stock purchase, is expected to close by the end of 2011, subject to customary closing conditions.