Category Archives: Lubrizol

Sientra Acquires Breast Implant Manufacturing Operation from Lubrizol Life Science

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Sientra, Inc. (NASDAQ: SIEN), a medical aesthetics company, has announced the acquisition of the dedicated FDA-approved silicone breast implant manufacturing operation in Franklin, Wisconsin, from Berkshire Hathaway’s Lubrizol Life Science.

Lubrizol will receive $20 million in cash and up to 607,442 shares of Sientra stock for assets comprised of dedicated manufacturing equipment, building improvements, in-process inventory, raw materials and supplies and the transfer of the intellectual property rights, processes and know-how necessary for Sientra to manufacture its breast implants.

The transaction is as follows:

• $14 million is payable in cash at closing.

• The balance of the cash consideration will be paid in a $3 million cash payment in 2021 and a $3 million cash payment in 2023.

• Sientra will also issue up to 607,442 shares of stock to Lubrizol Corporation if certain Sientra share price milestones are achieved over a 48-month period.

In exchange, Lubrizol Life Science will turn over to Sientra a turnkey, fully operational Class 3 breast implant manufacturing operation that is now 19 months into commercial scale-up with established capacity that continues a steady ramp to position the Company to meet its near-term and long-term commercial objectives. Importantly, this transaction culminates a win-win commercial relationship between Sientra and Lubrizol Life Science that began in 2016 with co-development to achieve the validated manufacturing processes and specifications necessary to gain FDA PMA supplement approval in April 2018.

Sientra has agreed to employ the majority of Lubrizol Life Science’s employees that are currently dedicated to the Sientra implant manufacturing operation in Franklin. The parties have also agreed to a transition services agreement and a long-term lease agreement of existing and expansion space in Lubrizol’s Franklin facility. Sientra’s tissue expanders will continue to be manufactured by Lubrizol Life Science in Victor, Montana and both companies will continue to collaborate on bringing innovative new products to the aesthetic market.

© 2019 David Mazor

Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell the stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.

French Prosecutors Launch Investigation Into Lubrizol Fire in Rouen

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French prosecutors on Tuesday launched an investigation into whether there was negligence on behalf of Berkshire Hathaway’s Lubrizol Corporation that caused the massive fire that destroyed the Lubrizol plant in Rouen, Normandy, France.

Paris prosecutor Remy Heitz released a statement that prosecutors where investing whether there was “involuntary destruction caused by fire due to an obviously deliberate breach of a security obligation”.

Fears of toxic chemical contamination from the September 27 fire are ongoing, but France’s Minister of Health previously announced that “first samples remain below the recommended thresholds of the normal environment.”

The Rouen plant was founded in 1954, and manufactured and packaged additives for lubricants and paint.

No casualties have been reported.

© 2019 David Mazor

Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell the stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance

Lubrizol Sets Up Fund for Environmental Damage from Rouen Fire

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According to the newspaper Les Echoes, Lubrizol will set up a fund of roughly 50 million euros pay for the losses of farmers and other industries affected by the fire that destroyed its chemical plant in Rouen, Normandy, France.

An estimated 5,250 tons of chemicals, oil and fuel additives went up in flames in a massive fire that caused roughly 40 to 50 million euros ($44-55 million) in agricultural losses in the surrounding area, according to France’s Agricultural Minister.

The government has ordered a ban on the harvesting of crops and sale of animal products from the area due to the oily soot that blanketed the countryside.

According to Les Echoes, Lubrizol will directly compensate some 450 farmers in the region due to the ban on milk production because of the blaze.

The Rouen plant was founded in 1954, and manufactured and packaged additives for lubricants and paint.

No casualties have been reported and the cause of the blaze has yet to be determined.

© 2019 David Mazor

Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell the stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.

Agricultural Minister Estimates Crop Damage from Lubrizol Fire

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The estimated 5,250 tons of chemicals, oil and fuel additives that went up in flames in a massive fire at a Berkshire Hathaway-owned Lubrizol plant in Rouen, Normandy, France, has caused roughly 40 to 50 million euros ($44-55 million) in agricultural losses in the surrounding area, according to France’s Agricultural Minister.

The government has ordered a ban on the harvesting of crops and sale of animal products from the area due to the oily soot that blanketed the countryside.

During the multi-day blaze, nearby residents sheltered in place and local schools were closed, as more than 130 firefighters battled the fire, which left the facility in ashes.

Some fears of toxic chemical contamination eased a bit when France’s Minister of Health has announced that “first samples remain below the recommended thresholds of the normal environment.”

The Rouen plant was founded in 1954, and manufactured and packaged additives for lubricants and paint.

No casualties have been reported and the cause of the blaze has yet to be determined.

© 2019 David Mazor

Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell the stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.

France’s Minister of Health Comments on Lubrizol Fire in Rouen

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Lawsuits are already lining up after a reported 5,250 tons of chemicals, oil and fuel additives went up in flames in a massive fire at a Berkshire Hathaway-owned Lubrizol plant in Rouen, Normandy, France.

Nearby residents sheltered in place and local schools were closed, as more than 130 firefighters battled the fire, which left the facility in ashes. There was also concern that the nearby Seine river would be polluted.

Fears of toxic chemical contamination are ongoing, but France’s Minister of Health has announced that “first samples remain below the recommended thresholds of the normal
environment.”

The Rouen plant was founded in 1954, and manufactured and packaged additives for lubricants and paint.

No casualties have been reported and the cause of the blaze has yet to be determined.

© 2019 David Mazor

Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell the stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.

Black Smoke Fills Sky as Firefighters Battle Blaze at French Lubrizol Plant

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Over 130 firefighters battled a blaze at a Berkshire Hathaway-owned Lubrizol plant in Rouen, Normandy, France.

The chemical plant was fully engulfed in flames and is expected to take days to fully extinguish. Nearby residents were sheltering in place and local schools were closed. There is concern that the nearby Seine river could be polluted.

The plant was founded in 1954, and manufactures and packages additives for lubricants and paint.

No casualties have been reported and the cause of the blaze has yet to be determined.

© 2019 David Mazor

Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell the stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.

Lubrizol Receives Gold Sustainability Rating From EcoVadis

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As an affirmation of its commitment to sustainability, Lubrizol is proud to announce the company recently received a Gold sustainability rating from EcoVadis. EcoVadis is the world’s most trusted provider of business sustainability ratings, providing detailed assessments of business’ environmental, social and ethical performance.

A Gold rating means Lubrizol scored within the top five percent of more than 55,000 companies rated by EcoVadis and the top two percent of its industry. The company was evaluated on the strengths of its actions and policies relative to Environment, Labor & Human Rights, Ethics and Sustainable Procurement. This is the sixth year Lubrizol was part of the EcoVadis evaluations and has seen a steady increase in its scores every year.

“The EcoVadis scores are an important external validation of our focus on sustainability,” says Julie Edgar, Lubrizol’s Chief Sustainability Officer. “Lubrizol touches the lives of billions of people every day, and we take our responsibilities to those consumers, our customers, our employees and our communities very seriously.”

Lubrizol’s commitment to inspiring sustainability that improves lives is fully integrated across the organization. The company’s approach includes a broad view of sustainability, including balance among Environmental, Social, Governance and Ethics, and Economic factors, as well as life-cycle thinking to support business strategies.

In addition to its own internal sustainability assessments, the company seeks and incorporates external stakeholder feedback, such as the EcoVadis scores, and applies global trends to identify opportunities in the continued progression of its sustainability strategy and practices.

© 2019 David Mazor

Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell the stock. The information contained in this article should not be construed as personalized or individualized investment

Lubrizol Reorganizes its Personal, Home and Health Care Business Lines

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The Lubrizol Corporation has announced the reorganization of its Personal, Home and Health Care business lines, integrating them under a newly dedicated brand, Lubrizol Life Science.

The change reflects the company’s commitment to evolve with the beauty, health, home and wellness markets, which continue to cross over and converge. The newly formed Lubrizol Life Science team seeks to enhance the value of its solutions and services to customers and end users through its collective expertise in chemistry, applications and market insights.

“Lubrizol Life Science brings together a great variety of formulation and product development experience to sit under one umbrella,” says Lubrizol Advanced Materials President Rick Tolin. “Our internal capabilities are focused and aligned to help our customers quickly meet the expectations of today’s consumers for products that ensure them of a healthier, more beautiful and comfortable life.”

The newly aligned Lubrizol Life Science team is placing a priority on developing and testing products in partnership with customers, engineering breakthroughs and co-driving initiatives that fuel growth. Practices and processes emphasize agile innovation, enabling the organization to act at the speed of a start-up, while responding with the reach, resources and delivery of a global leader. The new brand will also emphasize the proactive innovation needed to bring market-ready solutions to customers, while capitalizing on the reliability of Lubrizol’s 90 years of science and efficacy.

Tolin points out, “Our beauty, health and home customers can count on us bringing truly differentiated products to market, formulated with ingredients that are consumer-driven and backed by the reliability of Lubrizol.” Tolin adds, “The Lubrizol Life Science team is poised to service customers throughout the value chain, from concept to commercialization. Once viewed by customers as a chemical and ingredient supplier, we have evolved into an essential, concept-to-commercialization solutions partner.”

Lubrizol Life Science also plans to add strategic technology, capability and talent by investing to expand its portfolio, including new acquisitions that bring unique opportunities and synergies.

© 2019 David Mazor

Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell the stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.

Lubrizol Corporation Acquires Bavaria Medizin Technologie GmbH

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The Lubrizol Corporation has acquired Bavaria Medizin Technologie GmbH (BMT), an innovative designer and manufacturer of both intravascular (coronary, peripheral, and cranial) and nonvascular devices, including drug-coated balloons, by its German subsidiary Lubrizol Deutschland GmbH from its current majority shareholder Custos Vermögensverwaltungs GmbH as well as from the minority shareholders.

This acquisition builds upon Lubrizol’s expertise in precision thermoplastic extrusion and product development, establishing Lubrizol as a true end-to-end partner to the global medical device and pharmaceutical industries.

With over 100 employees, BMT is headquartered near Munich, Germany and operates a manufacturing facility in Sibiu, Romania. A pioneer in catheter-based technologies, BMT developed the first commercial drug-coated balloon, the Paccocath™ catheter. Today, BMT holds over 50 patents and continues to innovate through self-funded R&D projects, as well as contract R&D services.

Additionally, BMT offers private label manufacturing of proprietary catheters and balloons along with original equipment manufacturing (OEM) services, which include the manufacturing of subassemblies and components, sterilization, packaging and labeling, stent crimping, and logistics management.

The acquisition of BMT expands Lubrizol’s product design, development, and manufacturing expertise and provides access to proprietary catheter and balloon technologies. BMT’s experience and reputation in the drug-coated balloon (DCB) space aligns well with Lubrizol’s pharmaceutical CDMO business and positions Lubrizol as the ideal partner for developing next generation DCBs.

“Lubrizol continues to invest in opportunities that position us as a full-service development partner for innovative OEMs in the interventional space,” said Uwe Winzen, general manager of the Health business of Lubrizol Life Science. “Our customers will benefit from additional design capabilities, an increased global footprint, and synergies with our existing formulation and manufacturing services.”

© 2019 David Mazor

Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell the stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.

Lubrizol Announces Global Collaboration with Corbion

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The Lubrizol Corporation has created an exclusive global partnership with Corbion Biotech, Inc, bringing AlgaPur(TM) high stability high oleic algae oil to the personal care and cosmetics markets.

Based in the Netherlands, Corbion is a global market leader in algae ingredients. This collaboration combines Lubrizol’s formulation experience and knowledge of the personal care market with Corbion’s innovative bio-based solutions and sustainable practices.

AlgaPur(TM) High Stability High Oleic Algae Oil is a unique algae oil with formulation and performance benefits for a diverse range of personal care applications. Key benefits include:

• Elegant sensory experience: Silky, non-greasy feel providing excellent hydration and ease of spreadability
• Stable for formulating: Superior oxidative stability with over 90% Omega-9 oleic acid, allowing for extended shelf life
• Mild formulations: Free from known allergens, low odor and neutral color
• Sustainable production: Palm-free, and produced with a low carbon, land and water footprint

Bio-based ingredients and sustainable solutions are a developing trend in the personal care industry, experiencing significant global growth. “This new collaboration allows our innovation teams to expand our formulation expertise, bringing innovative bio-based solutions with excellent performance attributes,” states Jean Claude Deneuville, global director agile businesses at Lubrizol.

“Working with Lubrizol provides the opportunity to expand access and adoption of AlgaPur(TM) High Stability High Oleic Algae Oil in the personal care market,” says Marc den Hartog, executive vice president of Innovation Platforms at Corbion. “Corbion’s unique algae oil ingredient is a versatile, new ingredient for formulators to help meet consumers demands for sustainable, traceable and high-performance products.”

Corbion is the global market leader in lactic acid, lactic acid derivatives, and a leading company in emulsifiers, functional enzyme blends, minerals, vitamins and algae ingredients. Corbion is a global player in personal care, offering natural, safe and cost-effective ingredients, widely known for its their emulsification, moisturizing, pH adjustment and antimicrobial functions.

In 2018, Corbion generated annual sales of € 897.2 million and had a workforce of 2,040 FTE.

© 2019 David Mazor

Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell the stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.