Press Release – Quaker Chemical Updates Timing On Houghton Combination
Quaker Chemical Corporation (NYSE: KWR) today provided an update on the closing timeline of its combination with Houghton International which is awaiting final regulatory approvals from the European Commission (“EC”) and Federal Trade Commission (“FTC”). Below is a summary of the status of each of these regulatory approval processes.
EC Approval Update
The EC conditionally approved the combination on December 11, 2018, including the remedy proposed by Quaker and Houghton. Quaker expects final approval from the EC once the final purchase agreement is in place and agreed upon by Quaker, Houghton, and the buyer of the divested product lines.
FTC Approval Update
Quaker continues to be in productive discussions with the FTC, although the process is taking longer than anticipated. Given the time lapse since Quaker’s initial filing, the FTC has requested updated information as part of their approval process. In addition, the government shutdown in the U.S. increases the uncertainty of the timeline to receive final approval. The proposed remedy being discussed with the FTC continues to be consistent with Quaker’s previous guidance that the total divested product lines will be approximately 3% of the combined companies’ revenue. Given current information, Quaker estimates that FTC final approval and closing of the combination will occur within the next few months.
“We are pleased to have received the conditional approval from the EC as this was a key milestone in our efforts to complete the combination,” said Michael F. Barry, Chairman, Chief Executive Officer and President of Quaker. “We look forward to completing the approval process with the FTC and remain confident in the value the combined company will deliver to our shareholders, customers, and employees.”
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