With facilities in Raubling, Germany and Chennai, India, the division, called A&I, will be now managed by Auctus, which anticipates 2006 sales revenues from the unit to be approximately $30m (€24m).
A&I was part of Lubrizol's consumer specialties product line in its Specialty Chemicals segment, producing APIs and advanced intermediates for proprietary and generic drug manufacturers worldwide, but the Ohio-based company last July announced its intent to divest non-core businesses with combined revenues of $500m.
As a result, A&I this month became the fifth and last of Lubrizol's planned divestitures, passing on to the management of Auctus.
"The A&I business was sold because it was not core to the direction the corporation is moving," Lubrizol spokesman David Cowen told In-PharmaTechnologist.com.
"Customers should not be affected by this change as the business and facilities remain intact."
Auctus plans to further invest in the A&I business in both technology and capacity to achieve significant growth over the coming years.
All APIs and intermediates currently provide positive margins for A&I, making it a profitable business.
"The business has a technological USP in terms of its strength in the electrochemical area, it has strong growth perspectives with existing and new clients, a strong base of recurring revenues and strong management, plus state-of-the-art plants and machinery in both Germany and India," Nicolas Himmelmann, Auctus's investment director, told In-PharmaTechnologist.com.
"Consequently, we consider the business an attractive investment case and Lubrizol was a reliable, responsible and fair partner in the negotiation of the deal, which facilitated solutions for the complexity of an international asset deal."
Auctus's strategy is to invest in mid-sized companies in Germany and Austria, with a focus on management buyouts.
The closing of the transaction, whose details have not been disclosed, is expected to occur in early May.