Quaker Houghton to acquire Japan-based Dipsol Chemicals

Quaker Houghton (the "Company") (NYSE: KWR), the global leader in industrial process fluids, announced that it has entered into a purchase agreement to acquire Dipsol Chemicals Co., Ltd., ("Dipsol") a leading supplier of surface treatment and plating solutions and services primarily for the automotive and other industrial applications, for  23 billion JPY (~$153 million at current rates), subject to post-closing adjustments.  Dipsol is headquartered in Japan and operates globally with revenues of approximately $82 million over the twelve-month period ending December 31, 2024.  The purchase price represents a multiple of approximately 10.5x Dipsol's trailing twelve month estimated adjusted EBITDA of approximately $15 million.

Joseph Berquist, chief executive officer and president said, "The acquisition of Dipsol demonstrates our ability to use our strong financial position to make strategic investments that will accelerate growth and create shareholder value.  Dipsol provides Quaker Houghton with leading product technologies that complement our technical service model and add capabilities and breadth to our differentiated portfolio of advanced solutions."

Dipsol was established in 1953 and is headquartered in Japan.  The company has a strong portfolio of products and services and a leading position in the Japanese market for plating chemicals.  Dipsol has approximately 450 employees worldwide, and a global presence with production and R&D facilities in Asia, North America, and Europe.

Mr. Berquist continued "Dipsol is a market leader, highly innovative and has an established market position and strong customer focus, especially in the Asia-Pacific region.  The acquisition will help expand our advanced solutions businesses in attractive end markets with solid growth characteristics and high barriers to entry.  Dipsol provides significant cross-selling capabilities and enhances our ability to meet and exceed the needs of our customers across the globe."

The transaction is expected to close in the second quarter of 2025 and is subject to applicable regulatory approvals and certain other customary conditions.  Quaker Houghton expects to fund the purchase price for this acquisition with borrowings under its existing credit facility.

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ALCHEMPro News Desk (HU)