US chemical company Quaker Houghton has entered into an agreement with Norman Hay, a UK chemical manufacturing company, to acquire the latter’s operating divisions, for about $98 million.

Norman Hay offers specialty chemicals, operating equipment, and services to industrial end markets such as aerospace, automotive, oil and gas, and power generation through four divisions, namely Ultraseal, SIFCO ASC, Surface Technology, and Norman Hay Engineering.

Established in 1946, the company has approximately 400 employees with production and R&D facilities across Europe and the US.

The acquired divisions are expected to generate revenues of approximately £63.5 million (approximately $77.8 million at current rates) and adjusted EBITDA of approximately £11.3 million (approximately $13.8 million at current rates) for the financial year 2019, according to Quaker Houghton.

The divisions are expected to operate as a stand-alone business within Quaker Houghton’s Global Specialty Businesses platform.

Commenting on the acquisition, Michael F Barry – chairman, CEO and president 0f 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.

“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.

“In addition, Norman Hay’s engineering expertise, which includes robotics applications, strengthens the existing equipment solutions platform inside Quaker Houghton and further positions the Company for Industry 4.0.”

The transaction is subject to German regulatory approval, which is expected in October 2019.

  Michael F Barry, Norman Hay, Quaker Houghton