Two of the leading chemical companies in the region are about to merge as Conshohocken ‘s Quaker Chemical has announced it is acquiring Lower Providence’s Houghton International, writes Natalie Kostelni for Philadelphia Business Journal.

Shareholders at Houghton International will receive $172.5 million in cash in addition to a 24.5 percent stake in the newly combined company. Under the terms of the deal, Quaker Chemical will assume Houghton’s debt of $690 million. Houghton is owned by the Hinduja Group.

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Reported revenues for Quaker Chemical were $747 million in 2016, just under the $767 million reported by Houghton International for the same period. The combined company expects to see post-merger cost savings of close to $45 million.

Quaker Chemical has secured $1.15 billion in financing from both Bank of America Merrill Lynch and Deutsche Bank Securities for the acquisition. A part of the funds, $200 million, has been reserved for future needs. The deal has been approved by the boards of both companies.

Shares of the combined company will be listed on the New York Stock Exchange after the finalization of the merger. Quaker Chemical’s shares rose by nearly 18 percent to $146.31 following the announcement.

Read more about the merger at Philadelphia Business Journal by clicking here.

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