Quaker Chemical and Houghton International to Combine
Creating a global leader uniquely positioned in metalworking and primary metals platforms with deep expertise across attractive customer segments
Quaker Chemical Corporation ( NYSE : KWR ) and Houghton International Inc ., companies with a combined 250-year history as providers of process fluids , chemical specialties , and technical expertise to the global primary metals and metalworking industries , today announced that they have executed a definitive agreement to combine the companies . Both Quaker Chemical and Houghton International are headquartered in the Philadelphia area .
“ The proposed combination of Quaker Chemical and Houghton International represents the next phase of our evolution , and stays true to the vision of growing in our core specialties ,” said Michael F . Barry , Chairman and Chief Executive Officer of Quaker Chemical . “ Joining forces with Houghton International combines two highly complementary businesses , each having a long history of building tremendous expertise , technology and customercentric cultures dedicated to delivering long-term sustainable value to customers , shareholders and associates . The new company will capitalize on best practices and expertise from both businesses .” Sanjay Hinduja , Chairman of Houghton International , which is owned by the Hinduja Group through its Gulf Oil business , said , “ We are pleased to enter this agreement to unite these two distinguished and global companies . Together we will strengthen our capabilities and business models to better serve the global market and all our stakeholders .”
Under the terms of the agreement , Houghton International shareholders will receive $ 172.5 million of cash and 24.5 percent ownership of the combined company , representing approximately 4.3 million shares of newly issued Quaker Chemical stock . In addition , Quaker Chemical will assume Houghton International ’ s debt and cash , with net debt of approximately $ 690 million at yearend 2016 . The agreement has been approved by both Quaker Chemical ’ s board of directors and Houghton International ’ s board of directors with full support of the Hinduja Group , which will become Quaker Chemical ’ s largest shareholder .
Houghton International and Quaker Chemical are both known for a commitment to innovation in a highly specialized and technologically demanding industry . “ In addition to our complementary businesses ,” said Mike Shannon , Chief Executive Officer of Houghton International , “ we are each committed to creating solutions for our customers through innovation , strong technical expertise and global reach with localized applications expertise .”
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