Quaker Houghton has announced that it has agreed to acquire the operating divisions of Norman Hay plc, a private UK company that provides specialty chemicals, operating equipment, and services to industrial end markets, for a purchase price of 80 million GBP (~$98 million at current rates), subject to post-closing adjustments.
The divisions to be acquired are expected to have 2019 revenues of ~63.5 million GBP (~$77.8 million at current rates) and adjusted EBITDA of ~11.3 million GBP (~$13.8 million at current rates). The purchase price represents a multiple of ~7.1x of the divisions’ projected 2019 adjusted EBITDA and slightly increases Quaker Houghton’s leverage ratio (net debt to adjusted EBITDA) by 0.2x. Quaker Houghton continues to estimate its leverage ratio will be below 2.5x within two years.
The Company is required to file for German regulatory approval and expects to receive this approval and close the transaction in October 2019.
Norman Hay plc serves a number of industries including aerospace, automotive, oil and gas and power generation through four divisions:
This transaction is consistent with Quaker Houghton’s strategy to increase shareholder value through strategic “bolt-on” acquisitions that complement its existing business. Quaker Houghton intends to operate the acquired divisions as a stand-alone business within its Global Specialty Businesses platform while it completes the integration of Quaker Chemical and Houghton International.
Michael F. Barry, Chairman, Chief Executive Officer and President of Quaker Houghton, said, “This acquisition represents an opportunity to add new technologies with good growth characteristics in attractive core market segments with high barriers to entry such as die casting, automotive OEM and aerospace. We also believe it provides a strategic opportunity to take advantage of external market trends such as the light-weighting of vehicles and 3D printing where we have the opportunity to leverage our global footprint and complementary geographic strengths. In addition, Norman Hay’s engineering expertise, which includes robotics applications, strengthens the existing equipment solutions platform inside Quaker Houghton and further positions the Company for Industry 4.0.”
Norman Hay plc was established in 1946 as a decorative electroplating business and has evolved into a global specialty chemicals sealant, surface coatings and engineering group. The company is headquartered at its modern, state of the art production facility in Coventry, England. The company has approximately 400 employees with production and R&D facilities across Europe and the United States.
Source: Quaker Houghton
LinkedIn Twitter Xing EmailINEOS has postponed work on the propane dehydrogenation (PDH) unit at its Antwerp, Belgium site, opting to prioritise construction of the cracker, a company spokesperson said on […]
TechnipFMC says it has resumed activities related to the previous announced separation of the company into two separate pure-play businesses, TechnipFMC and Technip Energies.
Solvay’s new policy increases maternity leave to 16 weeks. It is now available to any co-parent regardless of gender or sexual orientation; it also includes parents who adopt. The parent employed by Solvay will receive 100% of his or her salary during this leave period.