#USA #Conshohocken #Quaker Houghton #Dipsol Chemicals #Natech Ltd.

Quaker Houghton Completes Strategic Acquisitions

In a significant move to enhance its market presence, Quaker Houghton (NYSE: KWR), a leading player in the industrial process fluids sector, has announced the completion of its acquisition of Dipsol Chemicals Co., Ltd. for approximately 23 billion JPY (around $153 million). This acquisition is pivotal as Dipsol is an established provider of surface treatment and plating solutions, particularly for the automotive industry. The company, headquartered in Japan, generated revenue of approximately $82 million in the twelve months preceding December 31, 2024.

The strategic acquisition reflects a multiple of approximately 10.5x Dipsol's estimated adjusted EBITDA of $15 million. To facilitate this purchase, Quaker Houghton utilized its existing credit facility, demonstrating its robust financial standing. Joseph Berquist, CEO and President of Quaker Houghton, expressed excitement about the acquisition, emphasizing that it would not only bolster growth but also enhance shareholder value. Dipsol and Natech, acquired earlier for roughly $5.2 million, are expected to contribute significantly to Quaker Houghton's diversified product portfolio.

Dipsol was founded in 1953 and has developed a reputation for its comprehensive array of plating chemicals, making it a leader in the Japanese market. With approximately 450 employees, Dipsol operates globally, with research and development facilities across Asia, North America, and Europe, solidifying its international reach.

Natech, based in the U.K. and established in 2002, specializes in manufacturing water-based cleaners and metal pre-treatment products. This acquisition further diversifies Quaker Houghton’s offerings in industrial applications, aligning with its goal to provide advanced, sustainable solutions across various sectors.

Berquist continued, "These acquisitions position us to better serve our customers with a broader product range and enhance our existing technical service model. Both Dipsol and Natech offer complementary technologies which will allow Quaker Houghton to meet evolving market demands effectively."

The acquisitions signify Quaker Houghton's commitment to strategic growth through targeted investments in companies that hold strong market positions and innovative product offerings. With these expansions, Quaker Houghton aims to capture emerging opportunities in growing end markets and leverage cross-selling capabilities for an increasingly diverse customer base.

In light of current global economic challenges, such as increasing raw material costs and ongoing supply chain constraints, Quaker Houghton remains focused on maintaining liquidity and complying with its credit facility terms while navigating the complex business environment.

These acquisitions mark a transformative chapter for Quaker Houghton as it continues to position itself as a global leader in industrial process fluids, committed to sustainability and innovation in its pursuit to support diverse industries worldwide. As the company integrates these new entities, stakeholders and market analysts alike will be closely watching its growth trajectory and overall impact within the industry.