Topic: How To Invest

Wall Street Stock Forecaster Hotline – Friday, April 7, 2017

Article Excerpt

PLEASE NOTE: Due to the Good Friday holiday, our next Hotline will go out on Thursday, April 13, 2017. QUAKER CHEMICAL CORP., $140.39, New York symbol KWR; makes lubricants that keep mechanical parts from rusting. The stock jumped 10% this week after the company agreed to merge with 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 deal, Houghton’s owners will receive $172.5 million in cash and a 24.5% stake in the combined company. Quaker will also assume Houghton’s debt of $690 million. The companies expect to complete the transaction by the end of 2017. In 2016, Quaker earned $61.4 million, or $4.63 a share, on revenue of $747.7 million. Eliminating overlapping operations and improving efficiency should let the combined company cut its annual expenses by $45 million. It should realize most of those savings in the first two years. The addition of…