Quaker Chemical Corporation (NYSE: KWR) announced on July 30 that it has acquired Verkol, S.A., a leading specialty grease and lubricants manufacturer and marketer based in Northern Spain, for approximately USD 40.1 million, including net cash of USD 10.5 million.

Verkol sells products into the industrial end market segment, with a particular strength in servicing the steel industry. In 2014, Verkol recorded revenues of approximately USD 33.0 million and estimated adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) of USD 4.3 million. This transaction is consistent with Quaker’s strategy to increase shareholder value through acquisitions and to expand its entry into the specialty grease market.

Quaker Chemical said transaction-related expenses came to approximately USD 2.8 million. Together with the acquisition cost of USD 32.4 million, the total transaction cost was the equivalent of a 7.5 multiple of estimated 2014 adjusted EBITDA, said Quaker Chemical Chairman, Chief Executive Officer and President Michael Barry.

Barry said the acquisition is strategic and should generate additional shareholder value. Quaker Chemical, based in Conshohocken, Penn., U.S.A., is a leading global provider of process fluids, chemical specialties, and technical expertise to a wide range of industries, including steel, aluminum and automotive.

“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,” Barry said.

Verkol was established in 1923 and has operated in its current Bera, Navarra, Spain location since 1972, where the company’s headquarters, R&D and production are based. The company also has a sales office in Madrid. It has a total of 64 employees.