Quaker investors approve merger

Article Excerpt

QUAKER CHEMICAL CORP. $150 (New York symbol KWR; Income Portfolio, Manufacturing & Industry sector; Shares outstanding: 13.3 million; Market cap: $2.0 billion; Price-to-sales ratio: 2.6; Dividend yield: 0.9%; TSINetwork Rating: Average; www.quakerchem.com) makes lubricants and chemicals that keep mechanical parts from rusting. The company’s shareholders recently approved Quaker’s acquisition of Houghton International Inc. Based in Philadelphia, privately owned Houghton makes specialty chemicals, oils, and lubricants for customers in the automotive, aerospace, mining, and beverage industries. Under the terms of the takeover, Houghton’s owners will receive $172.5 million in cash and a 24.5% stake in the combined company. Quaker expects the merger will let it cut $45 million from its annual costs within the first two years. Quaker and Houghton expect to complete the transaction in late 2017 or early 2018. Quaker Chemical is a buy. buy…