Gulf Oil Corporation (GOCL), a Hinduja Group Company, through a step down subsidiary structure in the United Kingdom and USA, has completed acquisition of 100% stake in Houghton International Inc. for $1.045 billion, after satisfactory conclusion of regulatory approvals. The debt will be serviced through Houghton International Inc’s cash flows.
This acquisition will make Gulf the world’s 9-th largest lubricant company, fits extremely well with Gulf’s existing Lubricant portfolio and makes it a full range Lubricants company serving customers from Automotive, Metal working to Energy, Aerospace and Marine. On the other hand, Houghton has a very strong Industrial portfolio, which perfectly complements Gulf's very strong presence in the Automotive Lubricant sector.
Besides GOCL will operate Houghton as a separate company and the rest of Gulf’s operations will be able to leverage Houghton's extensive base of industrial customers to offer them a complete end-to-end range of lubricants. Similarly, Houghton will be able to leverage Gulf’s existing global network.
Houghton has a global footprint, with sales in more than 75 countries supported by 12 manufacturing facilities in 10 countries. Houghton, a profitable company, recorded sales of $858 million and adjusted EBITDA of $132m (15.4%) for the 12 months ending September 2012.
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