Hinduja's Gulf Oil to acquire Houghton International for over $1 bn
New Delhi: Hinduja Group firm Gulf Oil Corp on said it will acquire US-based speciality chemicals maker Houghton International Inc for USD 1.05 billion (about Rs 5,670 crore).
In the second-biggest acquisition by an Indian company this year, Gulf Oil will buy 100 per cent stake in Houghton, whose chemicals and lubricants are used in the metalworking and automotive industries, from a US-based private equity fund, which it did not name.
New York-based private-equity firm AEA Investors LP had bought Houghton in 2007.
Gulf Oil, which sells lubricants and industrial explosives in India and offshore, said it will make the acquisition through its UK subsidiary.
The USD 1.045 billion deal is subject to certain conditions and Houghton will operate as a separate company, it said in a statement.
Lubricant maker Gulf Oil's planned acquisition is second only to Indian Hotels Co's USD 1.86 billion offer last month to buy Hamilton, Bermuda-based Orient-Express Hotels Ltd.
Houghton, a maker of fluids used for metal processing applications including cutting and stamping, has 12 manufacturing facilities in 10 countries and reported an operating profit of USD 132 million in the year to September 30 on sales of USD 858 million.
Gulf Oil said it will be able to offer Houghton's industrial clients "a complete end-to-end range of lubricants," following the acquisition. Houghton will give the company access to customers in more than 75 nations.