OMAHA, NE/HOUSTON, TX, Dec. 30, 2013 – Berkshire Hathaway Inc. (BRK.A)(BRK.B) is acquiring Phillips Specialty Products Inc. (PSPI), a flow improver business, from Phillips 66 (PSX). 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," commented Warren E. Buffett, Berkshire Hathaway chief executive officer. "The flow improver business is a high-quality business with consistently strong financial performance, and it will fit well within Berkshire Hathaway. I plan to have James L. Hambrick, CEO of The Lubrizol Corporation, 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 66's ongoing portfolio management and supports the company's growth strategy.
"Berkshire Hathaway made a strong offer for our high-performing flow improver business," said Greg Garland, Chairman and 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. About Berkshire Hathaway
Berkshire Hathaway and its subsidiaries engage in diverse business activities including property and casualty insurance and reinsurance, utilities and energy, freight rail transportation, finance, manufacturing, retailing and services. Berkshire's common stock is listed on the New York Stock Exchange, trading symbols BRK.A and BRK.B.
About Phillips 66
Built on more than 130 years of experience, Phillips 66 is a growing energy manufacturing and logistics company with high-performing Midstream, Chemicals, Refining, and Marketing and Specialties businesses. This integrated portfolio enables Phillips 66 to capture opportunities in the changing energy landscape. Headquartered in Houston, the company has 13,500 employees who are committed to operating excellence and safety. Phillips 66 had $51 billion of assets as of Sept. 30, 2013. For more information, visit www.phillips66.com or follow us on Twitter @Phillips66Co.