Quaker Houghton, a global leader in industrial process fluids made an announcement of a strategic acquisition on March 25, 2025. The company has entered into a purchase agreement for acquiring a leading supplier of plating solutions and surface treatment, Dipsol Chemicals Co., Ltd. Subject to post-closing adjustments, the purchasing agreement is closed for JPY 23 billion (USD 153 million).
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Dipsol, with its headquarters in Japan, established in 1953 and with over 450 employees globally, holds a strong position for plating chemicals in the Japanese market. The company also has a global presence in Research & Development (R&D) facilities and production which is extended to countries including Asia, Europe and North America.
Globally, the company earned a total revenue of approximately USD 82 million in the last twelve months, ending on 31st December 2024. This sheds light on the purchase prices, which reflect a multiple of approximately 10.5x Dipsol's year-long estimated adjusted EBITDA of approximately USD 15 million.
This purchase acquisition will benefit Quaker Houghton in expanding its advanced solution businesses and attract end markets with higher potential for growth, irrespective of significant barriers affecting the entry. Moreover, this acquisition will provide the company with stringent cross-selling capabilities as well as enhance its ability to meet and exceed the needs of its consumers globally.
As said by Joseph Berquist, the Chief Executive Officer and President of Quaker Houghton, "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."
The closure of this purchase agreement acquisition is expected to close in the second quarter of 2025, depending upon the customary conditions and regulatory approvals. In order to complete the process, Quaker Houghton is expected to pay the purchase price with the support of borrowings from its existing credit facilities.
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