Gulf Oil completes US-based Houghton buy

Our Bureaus Coimbatore/Hyderabad | Updated on December 21, 2012 Published on December 21, 2012

Gulf Oil Corporation Ltd, a Hinduja Group outfit, has acquired 100 per cent stake in Houghton International Inc., a major manufacturer of metal working fluids, for $1.045 billion (about Rs 5,747 crore).

The acquisition was made through a step-down subsidiary in the UK and USA.

This would make GOCL the 9th largest lubricant company globally and makes it a “full range” lubricants company serving customers from automotive to aerospace and marine sectors, GOCL said in a statement to the stock exchanges.

Houghton has a strong industrial portfolio that complemented GOCL’s presence in the automotive lubricant sector, the statement said.

GOCL said it would operate the acquired company as a separate entity and each would benefit from the other’s strengths. As the acquisition was made through a step-down subsidiary, the financials of GOCL would not be impacted and the debt would be serviced through Houghton International Inc’s cash flows.

Houghton recorded sales of $858 million and adjusted EBITDA of $132 million for the year ending Sept 2012 and has presence in 75 countries with manufacturing facilities in 10 countries.

Sanjay G. Hinduja, Gulf Oil Chairman, said, "We are delighted to acquire Houghton in the face of strong competition and strive to support its growth."

The company closed the transaction ahead of the December end deadline and before the extended Christmas holidays.

Gulf Oil shares spurted 4.94 per cent and were trading at Rs 88.85 once the news of completion of the acquisition was announced.

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Published on December 21, 2012
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