Shells metalworking oils business fits into Houghtons growth strategy to build the most successful and respected metalworking fluids company in the world, Houghton said in a statement provided to Lube Report.

According to Houghton, Shell Metalworking Oils has some of the best talent in the market, solid products and technologies, and a well-established distributor network, along with a strong global presence, especially in high growth countries like China, Mexico, Russia, Turkey, India and Thailand.

The acquisition includes three Shell subsidiaries along with their manufacturing sites. The plants are in Dortmund, Germany; Turin, Italy; and Rouen, France. Houghton will also acquire the product brand names, the associated trademarks, intellectual property, customers and employees that support Shells metalworking oils customer base globally.

The Shell brands acquired by Houghton include several soluble cutting oil brands (Metaline, Adrana, Sitala and Dromus), Macron and Garia neat cutting oils, Fenella rolling oils, Ensis rust preventives, Voluta quenching oils, Callina cleaners, and the Emulstar, Formage and Percol product lines. The Shell name will cease to be associated with the products and will be replaced by the Houghton name, Houghton explained, noting that the many brands formerly marketed by Shell for its metalworking oils will live on under the Houghton International umbrella of product brands.

We are still in the early stages of this acquisition, so we cant say specifically how Houghton products will be affected at this point, the Valley Forge, Pa.-based company added.

Houghton asserted it has no information at this time about any job cuts, or changes for the Shell metalworking oils plants.

The newly combined businesses will also be headquartered in Valley Forge, Pa. Led by CEO Paul DeVivo, the Houghton executive management team will assume responsibility for the Shell metalworking oils business once the agreement has closed.

In July this year, Houghton sold the U.S.-based D.A. Stuart aluminum hot rolling oil business to Quaker Chemical. The products were divested as a result of a settlement with the Federal Trade Commission to complete Houghtons 2008 acquisition of D.A. Stuart.

The FTCs investigation had found that Houghtons acquisition of D.A. Stuart combined the two largest suppliers of aluminum hot rolling oil in North America, giving the combined firm control of almost 75 percent of that North American market. The FTC filed a complaint alleging that through purchase of Stuart, Houghton could unilaterally raise aluminum hot rolling oil prices to consumers. The commission had also expressed concern the acquisition could decrease innovation.