Berkshire Hathaway to acquire Phillips 66’s flow improver business
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 strategic direction.
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 growth strategy.
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 chemicals businesses.
Following regulatory review, the transaction is expected to close in the first half of 2014.
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