Gulf Oil acquires US-based Houghton International, global market leader
in Metalworking Fluids
We are delighted to announce that Gulf Oil Corporation Ltd, part of the Hinduja group, has reached an agreement to acquire Houghton International, a global market leader of metalworking fluids and lubricants with headquarters in Valley Forge, PA.
Gulf remains fully committed to its core business in the downstream lubricant industry. Houghton has a strong industrial portfolio which complements Gulf’s strong presence in the Automotive Lubricant sector. Houghton will be operated as a standalone sister company to Gulf Oil Corporation.
Sanjay Hinduja, Chairman, Gulf Oil International
“The Houghton brand, its products, and its global market leadership position in metal working fluids are all outstanding. Our aim is to leverage capabilities of Houghton and Gulf to expand geographic coverage, grow sales and distribution networks, and strengthen manufacturing footprint for improved service and support to Gulf’s customer network” comments Gulf Oil Vice President International, Frank Rutten.
The agreement for the acquisition subject to customary closing conditions was signed on 6th November, 2012 with the sellers, a US-based private equity fund. It is expected that the transaction will close by year end.
Houghton has a global footprint, with sales in more than 75 countries and supported by 12 manufacturing facilities in 10 countries. With a scale and a global market position nearly double that of its nearest competitors; Houghton holds the #1 position in both North America and Europe and the #2 position in the fast-growing Asian market.
Founded in 1865, Houghton is the most recognized brand in Metal Working Fluids (MWF) oils and lubricants, especially in the North American and European markets. Houghton possesses the industry’s broadest offering in the MWF segment and related specialty chemicals. It has an extensive library of high-performance, proprietary chemical formulations, which are highly technical and are customized to meet specific segments.
Houghton acquired DA Stuart in 2008 and in 2011 acquired Shell’s MWF business to strengthen its position in the USD7.0 billion global MWF market. Houghton’s management team is highly committed, with extensive experience of the segment, which is one of key reasons why Houghton has delivered consistent growth and an improvement in returns.
BENEFITS TO GULF
The acquisition fits extremely well with Gulf’s Lubricants portfolio. Houghton has a very strong Industrial portfolio, which perfectly complements Gulf’s very strong presence in the Automotive Lubricant sector.
Gulf will be able to leverage Houghton’s extensive base of industrial customers to offer them its complete range of lubricants and, in addition, leverage opportunities to improve global manufacturing, sales and distribution capabilities.
“This is an extremely exciting development and we are delighted to welcome Houghton International and its highly talented and committed staff to the global Gulf family,” comments Gulf Oil Vice President International, Frank Rutten. The addition of Houghton’s range of metal working fluids will further expand and strengthen our capabilities across the world and will undoubtedly offer new and increased business opportunities.
”Houghton’s global metal-working position and brand reputation along with the combined strength of Gulf heritage and global coverage will help create value for all involved stakeholders,” concludes Frank Rutten. “We look forward to a great future together.”
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