Quaker Chemical to merge with Houghton International

|About: Quaker Chemical Corporation (KWR)|By:, SA News Editor

Quaker Chemical (NYSE:KWR) announces a merger with Houghton International, creating a provider of process fluids, chemical specialties and technical expertise to the global primary metals and metalworking industries with combined sales of ~$1.5B last year.

Houghton shareholders will receive $172.5M in cash and 24.5% ownership of the combined company, representing ~4.3M shares of newly issued KWR stock; KWR also will assume Houghton's $690M in net debt at year-end 2016.

KWR expects to achieve $45M in cost synergies from the deal, mostly within two years of closing.