Quaker Houghton acquires Dipsol Chemicals for $153 million

CONSHOHOCKEN, Pa. - Quaker Houghton (NYSE: KWR), a global leader in industrial process fluids currently trading near its 52-week low at $131.21, has announced the signing of a purchase agreement to acquire Dipsol Chemicals Co., Ltd., a Japan-based supplier of surface treatment and plating solutions. According to InvestingPro data, the company maintains a healthy financial position with a current ratio of 2.31, indicating strong liquidity to support strategic acquisitions. The deal, valued at approximately 23 billion JPY or $153 million, is expected to close in the second quarter of 2025, subject to regulatory approvals and customary conditions.

Dipsol, with a footprint that extends across Asia, North America, and Europe, reported revenues of around $82 million for the twelve-month period ending December 31, 2024. The acquisition price is based on a multiple of roughly 10.5 times Dipsol’s trailing twelve-month estimated adjusted EBITDA of $15 million. For context, Quaker Houghton generated $283.5 million in EBITDA over the last twelve months, with analysis suggesting the stock is currently undervalued.

Joseph Berquist, CEO and President of Quaker Houghton, stated that the acquisition aligns with the company’s strategy to leverage its strong financial position for investments that drive growth and shareholder value. Dipsol’s leading product technologies are expected to complement Quaker Houghton’s technical service model and expand its portfolio of advanced solutions.

Established in 1953, Dipsol has become a prominent player in the Japanese market for plating chemicals and employs about 450 people globally. Berquist highlighted Dipsol’s market leadership, innovation, and strong customer focus, particularly in the Asia-Pacific region. The acquisition is intended to enhance Quaker Houghton’s presence in end markets characterized by solid growth and high entry barriers.

Quaker Houghton plans to fund the acquisition through borrowings under its existing credit facility. The press release also mentioned non-GAAP financial measures, emphasizing their role in providing a clearer understanding of Dipsol’s financial performance, while acknowledging that these measures may not be directly comparable to those reported by other companies.

The release contained forward-looking statements regarding the acquisition’s potential benefits and the company’s future operations, subject to the usual risks and uncertainties inherent in such projections. These statements are based on information available as of the date of the press release and may change over time.

This news article is based on a press release statement from Quaker Houghton. The company’s strong financial foundation is evidenced by its 53-year track record of maintaining dividend payments and 17 consecutive years of dividend increases. Investors seeking deeper insights into Quaker Houghton’s financial health, valuation metrics, and growth prospects can access comprehensive analysis through InvestingPro’s detailed research reports, which cover over 1,400 US stocks with expert analysis and actionable intelligence.

In other recent news, Quaker Chemical Corporation reported its fourth-quarter 2024 earnings, revealing an earnings per share (EPS) of $1.33, which did not meet the forecast of $1.62. Despite this, the company’s revenue surpassed expectations, coming in at $444.09 million compared to the projected $441.87 million. The company also achieved a full-year adjusted EBITDA of $311 million, indicating strong financial performance. Quaker Chemical is optimistic about its future, with expectations of revenue, adjusted EBITDA, and earnings growth in 2025, although it anticipates foreign exchange headwinds.

Additionally, the company completed acquisitions of IKB and Sutai in 2024, as well as Chemical Solutions and Innovations in South Africa, to enhance its portfolio in emerging markets. Quaker Chemical’s focus on strategic investments and acquisitions is expected to drive future growth. Analyst discussions during the earnings call highlighted the company’s gross margin expectations, which are projected to return to the 37-38% range. The company remains committed to improving its commercial and operational aspects, with CEO Joe Bergquist emphasizing a return to growth and enhanced customer service.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.