Quaker acquires Spanish grease, lubricants maker Verkol

Quaker acquires Spanish grease, lubricants maker Verkol

10:25 AM, 31st July 2015
Quaker acquires Spanish grease, lubricants maker Verkol
Michael Barry, chairman, chief executive officer and president, Quaker. (File photo)

CONSHOHOCKEN, US: Quaker Chemical Corporation said that it has acquired Verkol SA, a Northern Spain-based specialty grease and lubricants manufacturer, for approximately $40.1 million, including net cash of $10.5 million. Verkol sells products into industrial end markets with a particular strength serving the steel industry. 

Verkol recorded revenues of approximately $33 million and estimated adjusted EBITDA of $4.3 million, in 2014. This transaction is consistent with Quaker’s strategy to increase shareholder value through acquisitions and to expand its entry into specialty grease, it said.

Verkol was established in 1923 and has operated in its current Bera, Navarra location since 1972, where the company’s headquarters, R&D and production are based. The company also has a sales office based in Madrid and currently has 64 employees in total.

“Verkol is a market leader in specialty grease and lubricants for the Spanish market with grease manufacturing capabilities and state-of-the-art R&D facilities. This acquisition helps us expand our specialty grease platform by providing Quaker local grease manufacturing in Europe as well as giving us additional grease product technology and talent. Verkol also brings unique technology in continuous casting products that will provide us with opportunities to cross sell to our global steel customer base,” said Michael Barry, chairman, chief executive officer and president, Quaker.

“We paid approximately $32.4 million for this acquisition in total, including approximately $2.8 million in transaction-related expenses, or the equivalent of a 7.5 multiple of estimated 2014 adjusted EBITDA,” added Barry.

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