By now, youve surely heard the big news in the metalworking fluids market: Quaker Chemical and Houghton International have announced their engagement, with Quaker promising a dowry of $172.5 million cash, plus assuming Houghtons debt. Houghtons parent, Hinduja Group, will acquire a quarter stake in the combined company.
As Katie Kellenberger reported in Lube Report, industry analysts have ranked both Quaker and Houghton among the worlds largest metalworking fluid suppliers. George Morvey of Kline & Co. estimated that the combined company will be the largest in the market.
A Quaker Chemical representative said the two companies began courting in the fall of 2015. The pair seem to be a good match, as Quaker Chemicals sales are dominated by metalworking fluids used in the production of primary metals, while Houghton mainly supplies metal removal fluids used in processes such as drilling, grinding and cutting. The couple have the largest portion of their sales in North America.
Acquisitions have been rampant over the past few years among lubricant blenders and distributors, especially in North America. Does this signal an acceleration of consolidation in the metalworking fluids market, too?
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Howard Briskin
HBriskin@LubesnGreases.com