Quaker Houghton announced Aug. 29 that it agreed to acquire the four operating divisions of United Kingdom-based Norman Hay plc for 80 million (U.S. $96.5 million). This includes the Surface Technology division, which provides dry film lubricant coatings that provide friction control.
Quaker Houghton is required to file for German regulatory approval and expects to receive that and close the transaction next month.
The Surface Technology division is a specialty provider of surface treatment solutions, including coatings, thermal sprays, plating and ancillary services. The division is expected to account for 11 percent of the four Norman Hay divisions combined, projected 63.5 million revenues for 2019.
According to Norman Hays web site, its dry film lubricant coatings provide friction control, corrosion resistance and surface release solutions for applications where liquid lubricants are impractical or could fail due to load or temperature. Typical applications include threaded components and fasteners, bearings, chains, gears and sprockets, and oil field connectors and couplings. Coatings are cured in ovens after application.
The division also makes an electroless nickel polytetrafluoroethylene coating under the Niflor name, which combines the low friction release properties of PTFE with the functional wear resistant hardness of electroless nickel. Electroless nickel plating is an auto-catalytic reaction that deposits an even layer of nickel-phosphorus or nickel-boron alloy on the surface of a solid material. Because of the PTFE coatings self-lubricating properties, it is an ideal surface treatment for components and assemblies that cannot use conventional lubricants, the company noted on its website.
The other three divisions acquired include Ultraseal, which provides impregnation technology, including porosity sealants, and associated chemistry and equipment for die cast components; Sifco ASC, which provides surface treatment solutions through selective electroplating, anodizing, chemical solutions and engineering solutions; and Norman Hay Engineering, which provides design and engineering services that support surface treatment plants and equipment for the other three divisions as well as additional third party industrial engineering applications.
Quaker Houghton said it intends to operate the acquired divisions as a stand-alone business within its Global Specialty Businesses platform while it completes the integration of Quaker Chemical and Houghton International. Quaker Chemical completed its merger with Houghton International on Aug. 1, forming the new Quaker Houghton. Quaker Chemical and Houghton were two of the worlds largest suppliers of metalworking fluids, and North America is the largest market for both.
This acquisition represents an opportunity to add new technologies with good growth characteristics in attractive core market segments with high barriers to entry such as die casting, automotive [original equipment manufacturer] and aerospace, Quaker Houghton Chairman, CEO and President Michael Barry said in a news release. In addition, Norman Hays engineering expertise, which includes robotics applications, strengthens the existing equipment solutions platform inside Quaker Houghton and further positions the company for Industry 4.0.
Norman Hay was established in 1946 as a decorative electroplating business, evolving into a global specialty chemicals sealant, surface coatings and engineering group. The company has about 400 employees, with production and research and development facilities across Europe and the United States.