Gulf Oil acquires Houghton Inc for US$ 1.045 billion

Gulf Oil Corporation Limited (GOCL), a Hinduja Group Company, through its subsidiary in the United Kingdom, is acquiring a 100pc stake in Houghton International Inc. for US$ 1,045 million, subject to customary closing conditions. An agreement was signed for the acquisition by its wholly owned subsidiary in the UK on 6th November, 2012 with the sellers, a US-based private equity fund. Houghton has a global footprint with sales in more than 75 countries, which are supported by 12 manufacturing facilities in 10 countries. Houghton recorded, on a twelve month basis ending September, sales of US$ 858 million and adjusted EBITDA of US$ 132 million. 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 and, in addition, there are various synergies that can be achieved in manufacturing, strategic sourcing and distribution. With a scale and a global market position nearly double that of its nearest competitors; Houghton holds the No 1 position in both North America and Europe and the No 2 position in the fast-growing Asian market. The acquisition fits extremely well with Gulf’s Lubricant portfolio. Houghton has a very strong Industrial portfolio, which perfectly complements Gulf’s very strong presence in the Automotive Lubricant sector.