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.

Published on December 21, 2012

A letter from the Editor

Dear Readers,

The coronavirus crisis has changed the world completely in the last few months. All of us have been locked into our homes, economic activity has come to a near standstill. Everyone has been impacted.

Including your favourite business and financial newspaper. Our printing and distribution chains have been severely disrupted across the country, leaving readers without access to newspapers. Newspaper delivery agents have also been unable to service their customers because of multiple restrictions.

In these difficult times, we, at BusinessLine have been working continuously every day so that you are informed about all the developments – whether on the pandemic, on policy responses, or the impact on the world of business and finance. Our team has been working round the clock to keep track of developments so that you – the reader – gets accurate information and actionable insights so that you can protect your jobs, businesses, finances and investments.

We are trying our best to ensure the newspaper reaches your hands every day. We have also ensured that even if your paper is not delivered, you can access BusinessLine in the e-paper format – just as it appears in print. Our website and apps too, are updated every minute, so that you can access the information you want anywhere, anytime.

But all this comes at a heavy cost. As you are aware, the lockdowns have wiped out almost all our entire revenue stream. Sustaining our quality journalism has become extremely challenging. That we have managed so far is thanks to your support. I thank all our subscribers – print and digital – for your support.

I appeal to all or readers to help us navigate these challenging times and help sustain one of the truly independent and credible voices in the world of Indian journalism. Doing so is easy. You can help us enormously simply by subscribing to our digital or e-paper editions. We offer several affordable subscription plans for our website, which includes Portfolio, our investment advisory section that offers rich investment advice from our highly qualified, in-house Research Bureau, the only such team in the Indian newspaper industry.

A little help from you can make a huge difference to the cause of quality journalism!


Support Quality Journalism
This article is closed for comments.
Please Email the Editor
You have read 1 out of 3 free articles for this week. For full access, please subscribe and get unlimited access to all sections.