A newly formed affiliate of private equity investment firm AEA Investors LLC will acquire Houghton International, which provides lubricants and specialty chemicals, the companies announced Monday. Subject to shareholder and regulatory approval, the agreement is expected to close before the end of this year. Terms of the transaction were not disclosed.
Valley Forge, Pa.-based Houghton said there will be no immediate changes to its range of product and service offerings, facilities or employment. All of its senior management members are expected to continue with the company. Business operations will also continue under the Houghton International name after the merger, the company said.
Through the proposed partnership with AEA, we expect to enjoy greater access to capital which will enable us to provide our customers with customized metalworking fluids and chemical management services, said Houghton International President William MacDonald, Jr.
We seek to help management drive both organic and acquisition-based growth, leveraging Houghtons strong positions in its key markets, said Brian Hoesterey, a partner at AEA.
Based in New York City, AEA invests in companies in four sections: value-added industrial products, specialty chemicals, consumer products and services to those sectors. The company said it operates as a single global private equity organization that focuses on buying businesses headquartered in the United States and Europe, and selectively in Asia. In the industrial products and specialty chemicals sectors, AEA said it looks for companies that have high value-added margins, strong and defensible market positions in attractive niches, and opportunities to grow both organically and through accretive strategic acquisitions.
Privately-held Houghton is a manufacturer and supplier of industrial fluids and chemical management services. Since 1865, the company has been serving the metalworking, automotive and steel industries and other markets with the development and production of specialty lubricants, oils and chemicals.