Gulf Oil acquires Houghton International for over USD 1 bn

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Hinduja group firm Gulf Oil Corporation Ltd today said it is fully acquiring US-based Houghton International Inc for USD 1.045 billion (about over Rs 5,685 crore) through a UK-based subsidiary.

"An agreement was signed for the acquisition by its wholly-owned subsidiary in the UK on November 6, 2012, with the sellers, a US-based private equity fund," the company said in a filing to the BSE.

The USD 1.045 billion acquisition will be subject to customary closing conditions, it said.

Gulf Oil Corporation Ltd (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 en-to-end range of lubricants, it said.

"...in addition there are various synergies that can be achieved in manufacturing, strategic sourcing and distribution," GOCL said.

Houghton is a global market leader metal working fluids and has a global footprint with sales in more than 75 countries, which are supported by 12 manufacturing facilities in 10 countries, it added.

"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," GOCl said.

Scrips of GOCL were trading at Rs 89 per share in the morning trade on the BSE, up 1.60 per cent from the previous close.

Besides Indian Hotels, Rain Commodities reached an agreement this year to buy Belgium-based speciality chemicals group Ruetgers in a USD 918 million deal. Also, state-owned Oil and Natural Gas Corp (ONGC) bought stake in a group of oil fields in Azerbaijan for about USD 1 billion.

"An agreement was signed for the acquisition by its wholly-owned subsidiary in the UK on November 6, 2012, with the sellers, a US-based private equity fund," Gulf Oil said.

Gulf Oil Corp Ltd 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 en-to-end range of lubricants, it said.

"...in addition there are various synergies that can be achieved in manufacturing, strategic sourcing and distribution," it said.

"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," GOCL said. GOCL scrip closed at Rs 85.90 on the BSE, down 1.94 per cent from the previous close.