Quaker Gains Summits Greases


Quaker Chemical acquired specialty grease manufacturer Summit Lubricants for $30 million effective Dec. 31.

The purchase price approximates Summits anticipated 2011 net sales. The transaction includes Summits commercial operations and two manufacturing plants in Batavia, N.Y.

Summit Lubricants also toll-manufactures grease for third parties. It will retain its name and operate as a stand-alone subsidiary of Quaker. Summits specialty greases are sold through major grease distributors and used in military applications.

It should really be invisible to the existing customer base, Joseph Berquist, vice president and managing director of Quaker Chemicals North American operations, told Lube Report. We plan on maintaining or increasing the level of service, and were committed to growing their business and investing in R&D. Theyre undergoing an expansion project in their current plant right now, and we want to see that through. Were committed to doing that, and its well under way.

While Quaker has an existing grease business in North America and in other regions, Berquist noted, the company has had the greases toll-blended for it. This acquisition will give us a way to make our own products, and add to the portfolio a bit. This will increase our basket that we have to offer existing customers.

All of our business we have now, which weve gained over the last 20 years, has been without any formal sales or marketing force – basically, we let our products sell themselves, Summit Lubricants President Ron Krol told Lube Report. Now that we have a lot more capacity, were looking to grow the business. Quaker brings more channels to market that we dont currently have. That was the biggest appeal for us.

Krol noted the companies complement each other in terms of markets and having little overlap in their customer bases. Quaker will essentially be a customer for us that we didnt have before. Theyre in similar markets, but theyre not going to be competing with us for our current customers, so thats nice, Krol noted. We have products that Im sure will help them expand their customer base and vice versa. I think its a really good fit for both of us.

Quaker Chemical CEO and President Michael Barry echoed that thought, saying the lubricant and grease manufacturer was an excellent strategic fit for Quaker as it is complementary to our existing business. Summit is currently in the process of increasing its manufacturing capacity more than two fold. In addition to Summits ability to grow its business through its current customer base, we are excited at the prospect of offering Summits complementary product line to our existing customers both in the U.S. and globally.

Conshohocken, Pa.-based Quaker Chemicals lubricants offerings include a wide variety of metalworking fluids and hydraulic fluids. The company acquired the former D.A. Stuart U.S. aluminum hot rolling oil business from Houghton International in July 2010.

Summits products include a wide range of soap and non-soap greases, along with hydraulic fluids, open gear lubricants and solid fillers.

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