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KWR Acquires Dipsol Chemicals to Boost Portfolio of Advanced Solutions

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Quaker Chemical Corporation (KWR - Free Report) recently entered into a purchase agreement to acquire Dipsol Chemicals Co. Ltd. for JPY 23 billion (roughly $153 million). Dipsol is a leading supplier of surface treatment and plating solutions and services, mainly for automotive and other industrial applications. It is headquartered in Japan and had revenues of approximately $82 million over the 12-month period ending Dec. 31, 2024. 

This strategic investment aims to accelerate growth and create shareholder value by using Dipsol’s leading product technologies to complement KWR’s technical service model and add capabilities and breadth to its differentiated portfolio of advanced solutions. Dipsol has a leading position in the Japanese market for plating chemicals with a strong customer focus, especially in Asia-Pacific.

The acquisition of Dipsol will enable KWR to expand its advanced solutions in attractive and high-growth end markets with high barriers to entry. KWR is expected to fund this transaction with borrowings under its existing credit facility and wrap it up in the second quarter of 2025.

The KWR stock has lost 36.7% in the past year compared with the 6.1% decline in the industry.

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KWR’s Zacks Rank and Key Picks

KWR currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the Basic Materials space are Ingevity Corporation (NGVT - Free Report) , Axalta Coating Systems (AXTA - Free Report) and Carpenter Technology Corporation (CRS - Free Report) . While NGVT and AXTA sport a Zacks Rank #1 (Strong Buy) each at present, CRS carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Ingevity’s current-year earnings is pegged at $4.45 per share. NGVT’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed once, with the average surprise being 202.9%.

The Zacks Consensus Estimate for Axalta’s current-year earnings is pegged at $2.51 per share. AXTA’s earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, with an average surprise of 16.28%.

The Zacks Consensus Estimate for Carpenter Technology’s current fiscal-year earnings is pegged at $6.95 per share. CRS’ earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with the average surprise being 15.7%. Its shares have soared 160.4% in the past year.

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