Conshohocken, PA-based Quaker Chemical Corporation announced last Thursday that it has acquired Verkol, S.A., a specialty grease and lubricating oil manufacturer and marketer based in Northern Spain, for approximately $40.1 million, including net cash of $10.5 million. Verkol sells products into industrial end markets with a particular strength serving the Steel industry. In 2014, Verkol recorded revenues of approximately $33.0 million and estimated adjusted EBITDA of $4.3 million. This transaction is consistent with Quaker's strategy to increase shareholder value through acquisitions and to expand its entry into specialty grease.

Michael F. Barry, Chairman, Chief Executive Officer and President, commented, "Verkol is a market leader in specialty grease and lubricants for the Spanish market with world-class grease manufacturing capabilities and state-of-the-art R&D facilities. This acquisition helps us expand our specialty grease platform by providing Quaker local grease manufacturing in Europe as well as giving us additional grease product technology and talent. Verkol also brings unique technology in continuous casting products that will provide us with opportunities to cross sell to our global Steel customer base."

Mr. Barry also commented, "We paid approximately $32.4 million for this acquisition in total, including approximately $2.8 million in transaction-related expenses, or the equivalent of a 7.5 multiple of estimated 2014 adjusted EBITDA. We believe this is another strategic acquisition that will generate value for our shareholders."

Verkol was established in 1923 and has operated in its current Bera, Navarra location since 1972, where the company's headquarters, R&D and production are based. The company also has a sales office based in Madrid and currently has 64 employees in total. Verkol operates a grease plant with a capacity of 7,000 tons/year in one shift and a lubricating oil plant with a capacity of 18,000 tons/year in one shift.

Separately, Quaker Chemical last Thursday announced net sales of $183.7 million for the second quarter of 2015 compared to $191.3 million for the second quarter of 2014, and earnings per diluted share of $1.13 for the second quarter of 2015 compared to $1.16 for the second quarter of 2014.