Quaker Gets Specialty Grease Maker

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Quaker Chemical acquired specialty grease manufacturer ECLI Products LLC for $52 million and plans to continue growth in the specialty grease market through acquisitions.

Aurora-Ill.-based ECLI specializes in greases for OEM first-fill customers across several industries, including automotive, industrial, aerospace/military, electronics office automation and natural resources.

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We continue to build our specialty grease business with this acquisition, and believe it also provides a significant opportunity to leverage Quakers global operations footprint – together with the product and market expertise of ECLI Products, Quaker Chairman, CEO and President Michael Barry said in an Aug. 15 news release.

Barry said the acquisition also expands Quakers high-end grease business in attractive end markets while positioning Conshohocken-based Quaker for future growth. We intend to operate ECLI as a wholly owned subsidiary and an independent entity, Barry said. Our first grease acquisition, Summit Lubricants, will also continue to operate as an independent entity and remain focused on its ongoing commitment to customers and the third-party manufacturing of specialty lubricants.

ECLI Products LLC has 35 employees, based at its manufacturing facilities in Illinois and Ohio, a sales presence in Germany, and distributor relationships in Europe, Asia and South America. The company operates through two business segments – Engineered Custom Lubricants and Lubrication Technologies Inc. ECLI last year acquired Lubrication Technology, manufacturer of Christo-Lube brand fluorinated lubricants.

ECLI Products will continue to be led by President Ian Rowell and Vice President of Sales and Marketing Paul Bedford.

We got to know one another as we started to discuss a partnership of working together, and that led into an acquisition, ECLI President Ian Rowell told Lube Report. The partnership was around geographical expansion, and that grew into Quaker looking to acquire us.

Rowell said the companys acquisition by Quaker puts ECLI in a very strong position for continued growth because its now part of a truly global company. Its a big plus as it gives us access to Quakers global footprint in terms of sales presence, its manufacturing footprint and its presence in 19 countries, he noted. It also provides us a significant amount of financial support for further acquisitions going forward.

ECLI Products will have an estimated 2014 earnings before interest, taxes, depreciation and amortization of $7 million, compared to about $150,000 in 2009.

Quaker wants to make sure the growth activity and growth mode of the company stays in place, Bedford told Lube Report. Theyre leaving us separate and want to invest in the company to enter and continue to enter the global specialty grease market. They want to continue to acquire companies, and bolt them on to the grease business theyve acquired, to make it a large, global specialty grease business.

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Business    Mergers & Acquisitions