Quaker Acquires Remaining Interest in Mexican Affiliate
CONSHOHOCKEN, Pa., July 12, 2011 /PRNewswire/ — Quaker Chemical Corporation (NYSE: KWR) announced today that it has acquired the remaining ownership interest in its Mexican affiliate, TecniQuimia Mexicana, S.A. de C.V. Cash consideration of $10.5 million was paid for the 60% interest not previously owned by Quaker, with an additional $2.0 million payable in July 2012, subject to certain conditions. Quaker had been a joint venture partner in TecniQuimia Mexicana for more than 40 years.
Michael F. Barry, Chairman, CEO and President, commented, “With this acquisition, we will further strengthen our position in Mexico – a market that is expected to experience above average growth over the next several years. In addition, as large companies continue to invest in Mexico, including many of our automotive and steel customers, it is important that Quaker be able to leverage the strengths that both Quaker and TecniQuimia Mexicana have to offer to best serve our customers.”
As part of the acquisition, Quaker will record a one-time, non-cash gain in the third quarter of 2011, representing a revaluation of its existing ownership interest in TecniQuimia Mexicana. Excluding the one-time gain and acquisition-related costs, the acquisition is expected to be slightly accretive to earnings in 2011. TecniQuimia Mexicana had sales of approximately $19 million in 2010.
Quaker Chemical Corporation is a leading global provider of process chemicals, chemical specialties, services, and technical expertise to a wide range of industries – including steel, aluminum, automotive, mining, aerospace, tube and pipe, coatings and construction materials. Quaker’s products, technical solutions, and chemical management services enhance our customers’ processes, improve their product quality, and lower their costs. Quaker’s headquarters is located near Philadelphia in Conshohocken, Pennsylvania.
For more information on Quaker, please visit our website at www.quakerchem.com.
SOURCE Quaker Chemical Corporation