Quaker will buy rival Houghton

In a deal that will create a powerhouse in metalworking fluids and other formulated products, Quaker Chemical is buying fellow Pennsylvania-based firm Houghton International from India’s Hinduja Group for cash, stock, and debt worth $1.4 billion. Houghton had earnings of $120 million last year on sales of $767 million. Quaker had $107 million in earnings on sales of $747 million. Both companies have businesses in metal-forming fluids, corrosion protection fluids, and lubricants for food- and beverage-can processing. Quaker sees opportunities to sell its products in markets where Houghton is active, such as offshore control hydraulics. Similarly, Quaker may open up markets for Houghton in specialty greases and biobased lubricants. Hinduja bought Houghton in 2012 for $1 billion.