Quaker Chemical Corporation announced last Monday that it has acquired Binol AB, a leading bio-lubricants producer primarily serving the Nordic region for SEK 137 million (~$18.7 million). Binol's estimated 2014 revenues are SEK 111 million (~$15.3 million) and adjusted EBITDA is SEK 16 million (~$2.2 million).
Binol develops, produces and markets environmentally friendly products to high-quality customers within two main segments: Metalworking and Forestry & Construction. Products are primarily marketed under the Binol brand names (Binol® and BioSafe®) and sold through company sales representatives in the Nordic region as well as an international network of distributors. In addition, Binol has distributed Quaker's water-miscible products in the Nordic region since 2004. This transaction is consistent with Quaker's strategy to increase shareholder value through acquisitions and complements our existing business. Quaker intends to operate Binol as a wholly owned subsidiary.
Michael F. Barry, Chairman, CEO and President, commented, "Binol is a market leader in bio-lubricants for the Nordic region with strong brand recognition and technology, an attractive customer base and good growth prospects. Quaker believes this is an attractive opportunity to acquire a platform in a market supported by strong underlying fundamentals. We also feel that this acquisition provides a strategic opportunity for Quaker to leverage Binol's environmentally friendly technology and customer-aligned products, including neat oil technology for metalworking applications and biodegradable hydraulic oils, across our global footprint."
Binol was established in 1975 as a subsidiary of AAK AB (publ), a leading Swedish manufacturer of specialty vegetable fats and oils. In 2003, Binol acquired BioSafe OY, a Finland-based forestry and construction lubricants provider in the Nordic region. Binol's company headquarters, R&D and production are currently based in Karlshamn, Sweden, with a sales office based in Raisio, Finland. The company has 22 employees.
