Hinduja group company Gulf Oil Corporation (GFCL) has acquired US-based Houghton International for $1.045 billion through a UK-based subsidiary, Business Line has reported.
Apparently, the deal was signed Tuesday morning and "the closure is expected in the next 60 days," a senior Hinduja official has said.
Gulf Oil hopes that Houghton's strong presence in industrial segment will complement its range of automotive lubricants and is eyeing synergies in manufacturing, sourcing and distribution.
The acquisition of Houghton, a specialty chemicals company was made from a private equity fund AEA Investors that acquired Houghton International in 2007
Houghton operates 12 plants globally and sells metal working fluids across North America and Europe. It reported an operating profit of $132 million for 12 months to end-Sept. on sales of $858 million.
Gulf Oil that sells lubricants and industrial explosives in India and offshore announced plans to operate Houghton as a separate company, Reuters has reported.
In a filing to the Bombay Stock Exchange, Gulf Oil said: "An agreement was signed for the acquisition by our wholly owned subsidiary in the UK on November 6, 2012, with the sellers, a US-based private equity fund."
Apparently, the Hindujas were keen on the buy as Houghton was a global supplier of metal working fluids that offered an excellent platform for growth in a fragmented industry, Business Line has stated, adding, the acquisition is subject to customary closing conditions.