Gulf Oil completes acquisition of Houghton International
21 December 2012
Gulf Oil Corporation (GOCL), a Hinduja group company, has completed the acquisition of the US-based Houghton International for $1.05 billion. In November this year, GOCL had announced it would acquire the oils and chemicals firm from a private equity fund, subject to regulatory approvals.
Houghton, manufactures specialty chemicals, oils, and lubricants.specialty chemicals, oils, and lubricants for the metalworking, automotive, and steel industries.
"We are delighted that we have been successful in acquiring Houghton in the face of strong competition and shall strive to strengthen and support Houghton in the coming days,'' GOCL Chairman Sanjay G. Hinduja said.
The acquisition makes GOCL the world's ninth-largest lubricant company as Houghton has a global footprint, with sales in more than 75 countries. It is also supported by 12 manufacturing facilities in 10 countries.
Houghton had sales of $858 million and adjusted EBITDA of $132 million (15.4 per cent) for the 12 months ending September 2012. The acquisition through the step-down subsidiaries ensures that the financials of GOCL will not be affected.
The acquisition fits well with Gulf's existing lubricant portfolio and makes it a range of lubricants for sectors ranging from automotive, metal working to energy, aerospace and marine, it said.
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.
Similarly, Houghton will be able to leverage Gulf's existing global network. There are various other synergies that can be achieved in manufacturing, strategic sourcing and distribution.