Quaker Houghton Completes its Acquisition of Dipsol Chemicals and Announces its acquisition of Natech, Ltd.
Rhea-AI Summary
Quaker Houghton (NYSE: KWR) has completed two strategic acquisitions to strengthen its industrial process fluids portfolio. The company acquired Dipsol Chemicals for 23 billion JPY (~$153 million), representing a 10.5x multiple of Dipsol's trailing twelve-month adjusted EBITDA of $15 million. Dipsol, established in 1953, generates annual revenues of approximately $82 million and employs 450 people globally.
Additionally, KWR acquired Natech, , a UK-based surface treatment chemicals manufacturer, for approximately 4 million GBP (~$5.2 million). Both acquisitions expand KWR's market presence in surface treatment and plating solutions, particularly in automotive and industrial applications. The Dipsol acquisition was funded through existing credit facilities.
Positive
- Strategic expansion into surface treatment market through two complementary acquisitions
- Dipsol brings significant revenue contribution of $82 million annually
- Strong market position in Japanese plating chemicals market
- Global presence with production and R&D facilities across three continents
- Opportunity for cross-selling and portfolio expansion
Negative
- Increased debt load from credit facility borrowing for acquisitions
- Integration risks from managing two simultaneous acquisitions
- Relatively high acquisition multiple of 10.5x EBITDA for Dipsol
News Market Reaction
On the day this news was published, KWR gained 0.56%, reflecting a mild positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
Additionally, the company also announced today the acquisition of Natech, Ltd., ("Natech") a
Joseph Berquist, Chief Executive Officer and President said, "We are very excited to have completed the acquisition of Dipsol and announce the acquisition of Natech, demonstrating our ability to use our strong financial position to make strategic investments that will accelerate growth and create shareholder value. Dipsol and Natech provide Quaker Houghton with leading market positions in their respective markets and product technologies, that complement our technical service model and add capabilities and breadth to our differentiated portfolio of products and services. They also expand our advanced solutions businesses in attractive end markets with solid growth characteristics, providing ample opportunity to cross-sell and meet the evolving needs of our global customers."
Dipsol was established in 1953 and is headquartered in Japan. The company has a strong portfolio of products and services and a leading position in the Japanese market for plating chemicals. Dipsol has approximately 450 employees worldwide, and a global presence with production and R&D facilities in
Natech was established in 2002 and manufacturers water-based cleaners, metal pre-treatment products, paint strippers and other products for a variety of industrial applications.
Non-GAAP Measure
The information in this press release includes non-GAAP (unaudited) financial information of Dipsol's estimated adjusted EBITDA. The Company believes this non-GAAP financial measure provides meaningful supplemental information as it enhances a reader's understanding of the financial performance of Dipsol. In addition, our definition of adjusted EBITDA may not be comparable to similarly named measures reported by other companies. The Company presents an estimated adjusted EBITDA for Dipsol, which is calculated as estimated EBITDA, which is calculated as estimated net income before depreciation and amortization, interest expense, net, and taxes on income before equity in net income of associated companies, plus or minus certain items that management believes are not indicative of future operating performance or not considered core to Dipsol's operations. As it relates to future projections for Dipsol, as well as other forward-looking information contained in this press release, the Company has not provided guidance for comparable GAAP measures or a quantitative reconciliation of forward-looking non-GAAP financial measures to the most directly comparable
Forward-Looking Statements
This press release contains "forward-looking statements" that fall under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and the Securities Act of 1933, as amended. These statements can be identified by the fact that they do not relate strictly to historical or current facts. We have based these forward-looking statements on assumptions, projections and expectations about future events that we believe are reasonable based on currently available information, including statements regarding the potential effects of economic downturns; tariffs, including uncertainty surrounding changes in tariffs; inflation and global supply chain constraints on the Company's business, results of operations, and financial condition; our expectation that we will maintain sufficient liquidity and remain in compliance with the terms of the Company's credit facility; expectations about future demand and raw material costs; and statements regarding the impact of increased raw material costs and pricing initiatives. These forward-looking statements include statements with respect to our beliefs, plans, objectives, goals, expectations, anticipations, intentions, financial condition, results of operations, future performance, and business, which may differ materially from our actual results, including but not limited to the potential benefits of acquisitions and divestitures, the impacts on our business as a result of global supply chain constraints, and our current and future results and plans and statements that include the words "may," "could," "should," "would," "believe," "expect," "anticipate," "estimate," "intend," "outlook, "target", "possible", "potential", "plan" or similar expressions. Such statements include information relating to current and future business activities, operational matters, capital spending, and financing sources. A major risk is that demand for the Company's products and services is largely derived from the demand for its customers' products, which subjects the Company to uncertainties related to downturns in a customer's business and unanticipated customer production slowdowns and shutdowns. Other major risks and uncertainties include, but are not limited to inflationary pressures, including increases in raw material costs; supply chain constraints and the impacts of economic downturns; customer financial instability; high interest rates and their impact on our and our customers' business operations; the impacts from acts of war, terrorism and military conflicts, including those in
About Quaker Houghton
Quaker Houghton is the global leader in industrial process fluids. With a presence around the world, including operations in over 25 countries, our customers include thousands of the world's most advanced and specialized steel, aluminum, automotive, aerospace, offshore, container, mining, and metalworking companies. Our high-performing, innovative and sustainable solutions are backed by best-in-class technology, deep process knowledge and customized services. With approximately 4,400 employees, including chemists, engineers and industry experts, we partner with our customers to improve their operations so they can run even more efficiently, even more effectively, whatever comes next. Quaker Houghton is headquartered in
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SOURCE Quaker Houghton
FAQ
What is the total value of Quaker Houghton's recent acquisitions in 2025?
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