29 December 2005
The Lubrizol Corporation announced that it has signed an agreement for the sale of its Engine Control Systems (ECS) business, with facilities located in Canada, the USA and Sweden, to CapitalWorks, an equity firm based in Cleveland, OH.
ECS, with current annual sales of approximately $24 million, was part of Lubrizol’s services and equipment product line in the Lubricant Additives segment. The transaction was a combination stock and asset sale, but financial terms were not disclosed. The closing is anticipated to take place by year end. This is Lubrizol’s third divestiture since it announced its intent in July to market non-core businesses with combined revenues of $500 million.
ECS designs and manufacturers exhaust aftertreatment systems that reduce emissions in mining, materials handling and off-road vehicles and equipment, in stationary engines, and in truck and bus fleets. Products are sold as original equipment to diesel engine manufacturers or as retrofit devices for in-use diesel vehicles and equipment.
Lubrizol acquired ECS in the early 1990’s, at the time both companies cooperated in the development of a diesel particulate filter system regenerated using Lubrizol’s copper-based fuel additive. Production of the additive has been abandoned after the Swiss VERT program research indicated that secondary emissions of dioxins may result from the use of copper additives.
Source: Lubrizol (press release)