Hinduja Group acquires Houghton International for 1 billion

[karan21]

MUMBAI: Hinduja Group firm Gulf OilBSE 2.50 % today said it has completed its acquisition of US-based Houghton International for $1.045 billion (about over Rs 5,747 crore) after conclusion of necessary regulatory approvals.

The acquisition of this speciality chemical maker would make Gulf Oil the world's 9th largest lubricant company, without affecting its financials as the purchase has been made through "a step-down subsidiary structure" in the US and UK.

Houghton, a global market leader in metal working fluids, has 12 manufacturing facilities in 10 countries and sells its products in more than 75 countries. It recorded sales of $858 million and operating profits of $132 million in 12-month period ended September 2012.

'Metal working fluid' is a speciality chemical used for a variety of metal processing applications, including metal cutting and removal, metal forming, drawing and stamping, corrosion prevention and hydraulic systems.


"We are delighted that we have been successful in acquiring Houghton in the face of strong competition and shall strive to strengthen and support Houghton in the coming days," Gulf Oil Chairman Sanjay G Hinduja said.

Shares of Gulf Oil rose sharply by over six per cent at the BSE and were trading at Rs 84.8 in late morning trade.

"Gulf Oil Corporation Ltd 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," the company said in a filing to the BSE.

Similarly, Houghton will be able to leverage other synergies that can be achieved in manufacturing, strategic sourcing and distribution, it said.

The debt will be serviced through Houghton International Inc's cash flow, Gulf Oil said.

Hinduja Group's Gulf Oil acquires Houghton International for over $1 billion - The Economic Times

Again Indian flag will go up in USA with pride

 

[Koovie]

Indian firms on a shopping spreeeeeeeeeeeeeeeeeeeeeee

 

[Ayush]

jai hind.

 

[IND151]

another feather in hat of Hinduja

 

[Lyrical Mockery]

How will this benefit India and common Indians? Had a PSU acquired a foreign entity, i would have understand the "joy" many Indians express in such situations.

I fail to see why should I or an ordinary India be proud or happy cuz the Tata group acquired Land Rover and Jaguar or that Mittal acquired Arcelor.

It is beyond my understanding.

 

[Dushmann]

I don't think hindujas are Indian. they are British.

 

[neehar]

How will this benefit India and common Indians? Had a PSU acquired a foreign entity, i would have understand the "joy" many Indians express in such situations.

I fail to see why should I or an ordinary India be proud or happy cuz the Tata group acquired Land Rover and Jaguar or that Mittal acquired Arcelor.

It is beyond my understanding.

growing business =more taxes to govt means more expenditure for people..more foreign acquisitions =more foreign exchange which increase rupee value and decrease petroleum rates per barrel so we get benefitted....
above all..we were ruled by foreigners for 500 years..and now we're buying them...including the east india company which ruled us..so the sense of pride is natural..and by the way..hinduja is also involved in philanthropy in india..so its good for the country if their company flourishes..

I don't think hindujas are Indian. they are British.

its indian..which later spread to europe and u.s
Srichand P. Hinduja, Chairman of the Hinduja Group, leads the Foundation. “Our aim,” he says, “is to build bridges between India and the world, between the past and the present, between generations that are and generations to come.”
http://www.hindujagroup.com/hinduja-foundation/hf.html