Gulf Oil acquires US group for $1.04bn
Dubai, November 7, 2012
Gulf Oil Corporation Limited (GOCL), a company of Indian conglomerate Hinduja Group, has acquired a 100 per cent stake in US-based Houghton International, a global market leader in metal working fluids, for $1.04 billion.
GOCL said its UK subsidary completed the transaction yesterday along with a US-based private equity fund.
On the deal, GOCL said the acquisition fits extremely well with Gulf’s Lubricant portfolio.
"Houghton has a very strong industrial portfolio, which perfectly complements Gulf’s very strong presence in the automotive lubricant sector," it added.
Founded in 1865, Houghton is the most recognized brand in Metal Working Fluids (mission-critical specialty chemicals, used for a variety of metal processing applications) including metal cutting and removal, metal forming, drawing and stamping, heat treatment and quenching, corrosion prevention and hydraulic systems.
Houghton has a global footprint, with sales in more than 75 countries, which are supported by 12 manufacturing facilities in 10 countries. Houghton recorded, on a twelve month basis ending September, sales of $858 million and adjusted Ebitda of $132 million.
GOCL will operate Houghton as a separate company and the rest of Gulf’s operations will be able to leverage Houghton’s extensive base of industrial customers to offer them a complete end-to-end range of lubricants and, in addition, there are various synergies that can be achieved in manufacturing, strategic sourcing and distribution.-TradeArabia News Service