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KWR Wraps Up Dipsol Chemicals Buyout & Announces Natech Acquisition
ZACKSยท 2025-04-04 12:50
Group 1: Acquisition Details - Quaker Chemical Corporation (KWR) has completed the acquisition of Dipsol Chemicals Co., Ltd. for JPY 23 billion (approximately $153 million) [1] - Dipsol generated around $82 million in revenues for the 12 months ended December 31, 2024, with an acquisition multiple of about 10.5 times its trailing 12-month estimated adjusted EBITDA of approximately $15 million [2] - Additionally, KWR announced the acquisition of Natech, Ltd. for about 4 million GBP (approximately $5.2 million) [3] Group 2: Strategic Impact - The acquisitions of Dipsol and Natech strengthen KWR's market position and enhance its technical service model, broadening its product and service portfolio [4] - These acquisitions are expected to expand KWR's advanced solutions business in high-growth potential markets, providing significant opportunities for cross-selling and meeting global customer needs [4] Group 3: Financial Performance and Outlook - KWR's shares have decreased by 43.1% over the past year, contrasting with a 2.3% decline in the Zacks Chemicals Specialty industry [5] - The company aims to achieve sustained growth and share gains by advancing its enterprise strategy, with expected run-rate cost savings of at least $20 million this year, which should enhance operational efficiency and competitiveness [6] - KWR anticipates revenue, adjusted EBITDA, and earnings growth in 2025 [6]