The Hinduja group is close to announce the acquisition of US-based chemical firm Houghton International for close to $ 1.1 billion. The deal could be announced any time as most of terms have been cleared between the two parties, a top official said.
This will be the biggest outbound acquisition from India Inc this year just days after Hyderabad-based Rain Commodities announced takeover of German speciality firm, Rutgers for Euro 702 million. A top Hinduja official said they have made the bid and are now waiting for the outcome. ""We are awaiting an announcement as some last minute negotiations are going on," an Hinduja group official said asking not to be quoted.
Houghton serves the metalworking, automotive, and steel industries – and a variety of other markets – with the development, production and management of the highest-quality specialty chemicals, oils, and lubricants. The Hindujas have a significant presence in the oil and lubricants segment in India with Gulf Oil.
The Hindujas will buy the company from the private equity firm AEA Investors which had acquired Houghton in 2007. The Hinduja brothers are one of India's biggest industrial houses with interests ranging from banking, automobiles to chemicals.
Founded in 1865 in Valley Forge in Pennsylvania, US, Houghton is privately held and is today world's biggest metal working fluids company.