Berkshire Hathaway is acquiring Phillips Specialty Products
Inc. (PSPI), a flow improver business, from Phillips 66,
company officials confirmed on Monday.
In exchange for the share capital of the wholly-owned
subsidiary, Phillips 66 will receive shares of Phillips 66
common stock currently held by Berkshire Hathaway. The
specific number of shares will be determined by the share
price at deal closing.
I have long been impressed by the strength of the
Phillips 66 business portfolio, said Warren E. Buffett,
Berkshire Hathaway CEO.
The flow improver business is a high-quality business
with consistently strong financial performance, and it will
fit well within Berkshire Hathaway," he added. "I plan to
have James L. Hambrick, CEO of Lubrizol, oversee its
PSPI leads the science of drag reduction and specializes in
developing polymers to maximize the flow potential of
pipelines. This transaction is part of Phillips 66s
ongoing portfolio management and supports the companys
Berkshire Hathaway made a strong offer for our
high-performing flow improver business, said Greg
Garland, CEO of Phillips 66. This transaction optimizes
our portfolio and focuses growth on our midstream and
Following regulatory review, the transaction is expected to
close in the first half of 2014.