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Business Acquisitions | 6 Months Ended
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Jun. 30, 2026
Business Combination, Asset Acquisition, Transaction between Entities under Common Control, and Joint Venture Formation [Abstract] |
Business Acquisitions | Business Acquisitions Previous Acquisitions Dipsol In April 2025, the Company acquired 100% of the outstanding equity interests of Dipsol Chemicals Co., Ltd. and its subsidiaries, (“Dipsol”) for approximately $185.6 million (27.7 billion JPY), which included approximately $30.1 million (4.5 billion JPY) of acquired cash for a net purchase price of approximately $155.5 million (23.2 billion JPY). In July 2025, the Company satisfied all routine and customary post-closing conditions and finalized the purchase price with no adjustments. The Company funded the acquisition purchase price with borrowings under the Company’s Credit Facility. In connection with the acquisition of Dipsol, the Company entered into foreign currency forward contracts, which resulted in a $187.0 million cash payment in April 2025 and a $0.6 million foreign exchange gain and a $1.4 million foreign exchange loss, respectively, during the three and six months ended June 30, 2025. Dipsol is headquartered in Japan and is a leading supplier of surface treatment and plating solutions and services primarily for the automotive and other industrial applications end markets. Dipsol has operations in several countries and these operations are reported within the Company’s respective Americas, EMEA, and Asia/Pacific segments. This acquisition expands the Company’s advanced solutions businesses in attractive end markets with solid growth characteristics. Dipsol also provides significant cross-selling opportunities and enhances the Company’s ability to meet the needs of our customers across the globe. The following table presents the fair values of Dipsol assets acquired and liabilities assumed as of the acquisition date:
Dipsol Assets Acquired and Liabilities Assumed Dollars in thousands |  |  |  |  |  | Estimated Fair Value (1) |
Fair value of assets acquired |  |  |  |  |  |  |
Cash and cash equivalents |  |  |  |  |  | $ | 30,084 |  |
Accounts receivable, net |  |  |  |  |  | 16,481 |  |
Inventories |  |  |  |  |  | 17,962 |  |
Prepaid expenses and other current assets |  |  |  |  |  | 1,231 |  |
Property, plant and equipment, net |  |  |  |  |  | 39,450 |  |
Right-of-use lease assets |  |  |  |  |  | 2,534 |  |
Other intangible assets, net |  |  |  |  |  | 55,000 |  |
Investments in associated companies |  |  |  |  |  | 5,096 |  |
Deferred tax assets |  |  |  |  |  | 989 |  |
Other non-current assets |  |  |  |  |  | 4,165 |  |
Total Assets Acquired |  |  |  |  |  | $ | 172,992 |  |
Fair value of liabilities assumed |  |  |  |  |  |  |
Accounts payable |  |  |  |  |  | $ | 6,763 |  |
Accrued compensation |  |  |  |  |  | 1,528 |  |
Other accrued liabilities |  |  |  |  |  | 2,415 |  |
Long-term lease liabilities |  |  |  |  |  | 1,446 |  |
Deferred income tax liabilities |  |  |  |  |  | 25,836 |  |
Total Liabilities Assumed |  |  |  |  |  | $ | 37,988 |  |
Noncontrolling interest |  |  |  |  |  | (2,451) |  |
Goodwill |  |  |  |  |  | 53,059 |  |
Total Consideration |  |  |  |  |  | $ | 185,612 |  |
(1) The Company recorded approximately $0.2 million of measurement period adjustments during the year ended December 31, 2025 to reflect changes in net working capital and tax balances. All measurement period adjustments were offset against goodwill. During the first quarter of 2026, the Company finalized the allocation of the purchase price. The Company allocated $55.0 million of the purchase price to intangible assets across the Americas, EMEA, and Asia/Pacific segments. Customer relationships, product technologies, and trademarks are being amortized over 14 years, 8 years, and 13 years, respectively. The following table presents the intangible assets recognized for each reportable segment:
|  | Americas |  | EMEA |  | Asia/Pacific |  | Total
Customer Relationships |  | $ | 3,500 |  |  | $ | 200 |  |  | $ | 26,300 |  |  | $ | 30,000 |
Product Technologies |  | — |  |  | — |  |  | 18,000 |  |  | 18,000 |
Trademarks |  | — |  |  | — |  |  | 7,000 |  |  | 7,000 |
Total Intangibles |  | $ | 3,500 |  |  | $ | 200 |  |  | $ | 51,300 |  |  | $ | 55,000 |
The Company recognized $53.1 million of goodwill, which is comprised of $46.9 million in the Asia/Pacific segment, $5.8 million in the Americas segment, and $0.4 million in the EMEA segment. The goodwill is not deductible for tax purposes. The goodwill is primarily attributable to expected synergies. Total sales from Dipsol included in the Condensed Consolidated Statement of Operations for the three and six months ended June 30, 2026 are $22.2 million and $41.3 million, respectively. Comparatively, total sales from Dipsol included in the Condensed Consolidated Statement of Operations for the three and six months ended June 30, 2025 were $20.9 million. Natech In April 2025, the Company acquired 100% of the outstanding equity interests of Natech, Ltd., (“Natech”) for approximately $6.5 million, which includes an initial cash payment of $6.0 million and a deferred payment of $0.5 million, subject to routine and customary post-closing adjustments, including an adjustment for working capital. Assets acquired included cash and cash equivalents of $1.5 million. Natech is based in the United Kingdom and is a manufacturer of surface treatment chemicals for a variety of industrial applications. Natech is reported as part of the EMEA reportable segment. This acquisition strengthens Quaker Houghton’s overall surface treatment product and application capabilities within Europe. The Company allocated $2.1 million of the purchase price to intangible assets and recognized $2.6 million of goodwill in the EMEA segment, none of which is deductible for tax purposes. The goodwill is primarily attributable to expected growth synergies. During the third quarter of 2025, the Company settled the working capital adjustment for an immaterial amount. During the first quarter of 2026, the Company finalized the allocation of the purchase price. CSI In February 2025, the Company acquired 100% of the outstanding equity interests of Chemical Solutions & Innovations (Pty) Ltd. (“CSI”), for approximately $3.9 million, subject to routine and customary post-closing adjustments, including an adjustment for working capital. CSI is based in South Africa and is a supplier of metalworking fluids and lubricants to the South African market. CSI is reported as part of the EMEA reportable segment. This acquisition strengthens Quaker Houghton’s position in South Africa and expands the Company’s presence in that region. The Company allocated $1.4 million of the purchase price to intangible assets and recognized $1.7 million of goodwill in the EMEA segment, none of which is deductible for tax purposes. The goodwill is primarily attributable to expected growth synergies. During the third quarter of 2025, the Company settled the working capital adjustment for an immaterial amount. During the fourth quarter of 2025, the Company finalized the allocation of the purchase price. The results of operations of Dipsol, Natech, and CSI subsequent to the acquisition dates are included in the unaudited Condensed Consolidated Statements of Operations for the three and six months ended June 30, 2026. During the three and six months ended June 30, 2026, the Company recognized $0.2 million and $0.9 million, respectively, of acquisition-related expenses including legal, financial, consulting and other costs, compared to $0.8 million and $4.1 million, respectively, during the three and six months ended June 30, 2025. These costs are included in Selling, general and administrative expenses (“SG&A”) in the Condensed Consolidated Statements of Operations. Certain pro forma and other information is not presented, as the operations of the acquired assets and businesses are not considered material to the overall operations of the Company for the periods presented.

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