Quaker Chemical to Acquire Houghton
Quaker Chemical Corporation has acquired Houghton International Inc. for
USD1.42 billion.
United
States: Quaker Chemical
Corporation, a Pennsylvania based chemical company, has announced its decision
to acquire London based Houghton International Inc. (Hinduja Group) for USD1.42
billion. The deal would be completed by early 2018 and a cash amount of
USD172.5 million would be paid by Quaker. Quaker would also exchange 24.5
percent shares of combined company, representing about 4.3 million shares of
the newly issued stock of Quaker Chemicals. This would make Hinduja the second largest
shareholder in Quaker Chemicals. However, Quaker would also inherit a debt of
USD690 million in this deal and expects to reduce the debt quickly due to its
strong cash flow generation.
TechSci Research depicts that the deal would
strengthen Quaker’s core segments, which would in turn lead to better service
for automotive, aerospace, heavy equipment and metal industries. Expanding
heavy equipment and automotive industry would create augmented demand for
lubricants across the globe.
According to the recently published
report by TechSci Research, “Global
Specialty Lubricants Market By Type, By End Use, By Region
Competition Forecast and Opportunities, 2011 – 2025”, the global specialty lubricants market
is anticipated to cross $ 81 Billion by the end of 2025. Globally, synthetic
oil-based specialty lubricant is the most preferred type of specialty lubricants.
High demand for synthetic oil-based specialty lubricants is due to their
superior performance at elevated temperatures, oxidation stability and
durability, as compared to conventional mineral oil lubricants. Additionally,
North America dominated global demand for specialty lubricants, and the same
trend is expected to continue during forecast period as well. Some of the
leading players operating in global specialty lubricants market include
Klueber, Exxon Mobil, Dow Corning, Sinopec and BASF SE, among others.