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Quaker Acquires Remaining Stake of India Joint Venture

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Quaker acquires Indian joint venture

On December 21, 2017, Quaker Chemical (KWR) announced the acquisition of India joint venture, Quaker Chemical India Private Limited. Quaker bought the remaining stake of 45% of the Indian joint venture. Quaker has been part of the joint venture for the past 20 years. The Indian arm was catering to the steel and metalworking industries and has a presence in various locations around India. This acquisition could help Quaker to improve its revenues.

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Michael Barry, chair, CEO, and president, said, “India is a market with strong growth opportunities in most of our business lines.  This acquisition, along with our new plant in Dahej to be completed in 2018, further strengthens our position in India and allows us to simplify our overall corporate structure and improve our organizational efficiencies.”

Stock price update

KWR stock prices gained 2.1% and closed at $152.0 for the week ended December 22, 2017. KWR stock traded 2.3% above the 100-day moving average price of $148.64, indicating an upward trend in the stock. KWR outperformed the Vanguard S&P Small-Cap 600 Growth ETF (VIOG), which rose 0.2%. VIOG invests 1.5% of its portfolio in KWR. On a year-to-date basis, KWR has risen 18.8%. However, analysts are expecting the stock price to reach $157.80, implying a potential return of 3.8% over the closing price as of December 22, 2017. KWR’s 14-day relative strength index of 45 indicates that the stock is neither oversold nor overbought.

VIOG also provides exposure to Nektar Therapeutics (NKTR), First Financial Bancorp (FFBC), and Neogen (NEOG), which have weights of 3.9%, 2.2%, and 2.3%, respectively, as of December 22, 2017.

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