Gulf Oil acquires Houghton International

Gulf Oil Corporation Limited (GOCL), a Hinduja Group Company, through its subsidiary in the United Kingdom is acquiring a 100 per cent stake in Houghton International for $1,045 million, subject to customary closing conditions.

An agreement was signed for the acquisition by its wholly owned subsidiary in the UK on 6th November, 2012 with the sellers, a US-based private equity fund, according to a press statement issued on Wednesday.

Gulf Oil has been present in the Middle East through its Dubai-based subsidiary, Gulf Oil Middle East since 1983 in Jebel Ali. Its Jebel Ali plant is one of the first lubricant plants in the Middle East to be certified ISO 9002.

Houghton has a global footprint, with sales in more than 75 countries, which are supported by 12 manufacturing facilities in 10 countries. Houghton recorded, on a twelve month basis ending September, sales of $858 million and adjusted EBITDA of $132 million.

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 end-to-end range of lubricants and, in addition, there are various synergies that can be achieved in manufacturing, strategic sourcing and distribution.