£80m American takeover of engineering group

A global industrial company has invested £80m in the purchase of Coventry chemicals and engineering group Norman Hay.

Norman Hay is headquartered at Lyons Park and has 400 staff across Europe and the United States. It was established in 1946 as a decorative electroplating business and has evolved into a global specialty chemicals sealant, surface coatings and engineering group.

The weaker pound means the £80m purchase price is nearly $10m cheaper than in May.

Quaker Houghton, which is listed on the New York Stock Exchange, was formed earlier this year through the $1.4bn acquisition of Houghton International by Quaker Chemical.

The company lays claim to being the global leader in industrial process fluids and employs 4,000 people in 25 countries around the world.

Michael F. Barry, chairman of Quaker Houghton, said, “This acquisition represents an opportunity to add new technologies with good growth characteristics in attractive core market segments with high barriers to entry such as die casting, automotive OEM and aerospace.”

Norman Hay operates four divisions – Ultraseal, SIFCO ASC, Surface Technology, and Norman Hay Engineering. The businesses work in a range of industries including aerospace, automotive, oil and gas and power generation.

It has annual revenues of £65m, generating EBITDA of £11.3m.

Quaker Houghton’s strategy is to seek bolt-on acquisitions that complement its existing business. It will run Norman Hay as a stand-alone business within its global specialty businesses platform, while it completes the integration of Quaker Chemical and Houghton International.

Barry added: “We also believe it provides a strategic opportunity to take advantage of external market trends such as the light-weighting of vehicles and 3D printing where we have the opportunity to leverage our global footprint and complementary geographic strengths.”

The deal must be approved by German regulators, which Quaker Houghton expects to have secured by the end of October.

Norman Hay was advised by a team from Deloitte, led by Darren Boocock.

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