Quaker Houghton has closed the acquisition of the operating divisions of Norman Hay plc, a private UK company that provides speciality chemicals, operating equipment and services to industrial end markets, for a purchase price of £80m ($98m).
The deal is subject to post-closing adjustments. Prior to the close, Quaker Houghton received German regulatory approval.
The Company continues to expect the acquired divisions to have 2019 revenues of £63m ($77m) and adjusted earnings before interest, tax, depreciation and amortisation EBITDA of £11.3m ($13.9m).
The purchase price represents a multiple of 7.1x of the divisions’ projected 2019 adjusted EBITDA.
Quaker Houghton chairman, CEO and president Michael F Barry said: “We are very
excited to close the acquisition of the operating divisions of Norman Hay plc and believe that this acquisition adds new technologies with good growth characteristics in attractive core market segments with high barriers to entry such as die-casting, automotive OEM and aerospace.
“We also believe it provides a strategic opportunity to take advantage of external market trends such as the light-weighting of vehicles and 3D printing where we have the opportunity to leverage our global footprint and complementary geographic strengths.
“In addition, Norman Hay’s engineering expertise, which includes robotics applications, strengthens the existing equipment solutions platform inside Quaker Houghton and further positions the company for Industry 4.0.”
Norman Hay plc was established in 1946 as a decorative electroplating business and has evolved into a global speciality chemicals sealant, surface coatings and engineering group.
The company is based at the modern, state-of-the-art production facility in Coventry, England. The business has approximately 400 employees with production and research and development (R&D) facilities across Europe and the US.