"Lubrizol is exactly the sort of company with which we love to partner -- the global leader in several market applications run by a talented CEO, James Hambrick," said Warren Buffett, Berkshire Hathaway chief executive officer, in a statement.
"Our only instruction to James -- just keep doing for us what you have done so successfully for your shareholders," Buffett said.
The deal, which requires approval from Lubrizol shareholders, was priced at $135 per share, a 28 percent premium over the firm's share price at the close of markets Friday and 18 percent above Lubrizol's all-time high share closing price.
"This transaction provides compelling value to our shareholders and is a clear endorsement of the growth and diversification success Lubrizol has achieved," Hambrick said.
The deal includes no change in management and no change of address for Lubrizol, which is based in Wickliffe, Ohio, officials said.
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