for you your the Thank Good. on Okay. quarter. questions
put my Houghton Relations with will I number Investor our a closed that on this better follow We can website the into of was of section you remarks. provide along deck. would I which into with to ask slides Combination you remarks slides we go Now, of if our put yesterday. could that so good the kind my
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So, on I'll start four. slide
that remarks. about information Here the the in is not updated of just governance, covered mention financing my and deal; I'll terms some synergies. two are things elsewhere now
closing the to times $XXX The at is net over the versus two announced deal. This times X.X Houghton at contributors of $XXX debt X.X closed to that net had EBITDA estimated the million the announcement years in we when our debt we -- one about versus ago. the was million
slide attractive the release On board. you a five, deal. we've and off financing we that us the terms is the which well. directors item and generate can pay bank in see debt us liquidity. provides to cash the flexible good a those the it's see undrawn Houghton press second independent provides rates all portion The And added flow, as with as three former you could for
very do for supportive process. appreciate the X.X on I to Fed's rates which help long X.X I group through And Wednesday, our range. being keep Also, thank percentage bank in to unattractive an want this will actions our
for tremendous and I will people customers a include, great to better. talent gaining to slide really have this combined the On our we are major summarize of some rationale are one, enable that But the so our greatest doing six, always we a service in strategic pool about Combination. features say many us company me talent. asset There Combination. highlights
continue us that be Two, size, we efficient much the market our synergies provide above and better capabilities. good the now to we done historically, grow expect ability the twice avenue more an the have to four, to now X% us to to are enable like Three, we cost R&D X% given size. if achieve which we're double even
them take I'm better and either truly I done future than will different our to to the ability excited allow us products have believe alone. products customers put about the developing company to in approaches together. for develop companies could two this
seven, slide key our On priorities.
like time to one our We them point are customers products during I'd our see number of services. and priority. integration Here disruption to this no be served that want out well and supplier our with
that our as but we key companies. a for culture as forward. is culture come will of people, most our strong company valuable again, similar consistent and priority going in be strong focus customer engagement focused Another to culture, together putting ensure to create companies two Both have we we a a asset lot a create and
be sustainability important the believe safety be will our of as known also our by in people, a making efforts better them. is some, increasing more our our to helping also We strongly CSR, ESG communities to we which sustainable for which around and customers
this slide industrial customers, creates in terms has locations countries of last increased two with scope fluids, manufacturing our On business in and global locations, of nine, people the do supplier global days. leading the combination dramatically R&D we
XX, leadership one differentiators Houghton. success. especially is Slide from critical leaders our is our a this directly the have some our level the which combination Quaker leaders our customers’ businesses and existing that led understand leaders industry experience of model our believe in new from to business the key needs is I competitors our and of of and of team really our is which
business of from experience leadership our in industry years XXX group. over have We this leadership
XX. On slide
and less its expansion of us across size scale risk. fronts whether customer, and multiple markets, with opportunities geography. or have in This increase products We summary a provides more our
touch these. the on one slides, of Over I'll next each of set
X,XXX very strengths that are bases different number the in we XX, and customer XX,XXX. Also about the and the maybe customers coming really the customers complementary company has dramatic each increase as of slide not in is due think from to talk overlap one with as markets. much to On would our different
reduced concentration Overall, now we our as combine customer our companies. is two
On customer sales comparing For Quaker Houghton before. X% in example, the of versus now X% we XX, to our are largest Quaker is past Slide now.
in market our this even more more metalworking our markets size, you near doubling key market But we still XX%. all has this this now than well than industrial are in see as fluids markets While end with within increased, area. doubled share in is presence can overall our presence less
slide have that different the presence. The we a next XX addressable slide, good markets shows
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a see top position our many the chart in the our On in can the see dots many chart, chosen the The markets. could of of markets. increase in increase of dots significant you this part more end leadership you better for and and the
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product but similar this one last on around as slide have the is lines. Next one, we chart XX, a
product made it of increase basket many in portfolio broader. products now our to and combination have strengthened many and that customer's markets. the see We can well-positioned in service You a the lines strong product our the of needs are dots that
future approaches takes the addition mentioned with to R&D in to excited I because of the different develop and combine organizations company I products better each products. that earlier, am formulating our As the also of ability
is I'd our of area to in shows now it slide like XX geographically. strength additional we additional One talk expansion where have
America, presence does our in countries. South Korea. combined now and in Thailand improved been Germany, company Overall business significantly areas being has Now several XXX as such India, our South Mexico,
growing changed seen be markets our with who combination XX has slide growth continue market model opportunities. time have We to by intimate our differentiated presentations despite grow X% the will really will be the investor our for X% to although cross-selling next in will a over nothing And and modestly customer past. the time over familiar our The strategy. a believe we above slide business the X% in to people X% this range to and
continue. it's selling products this And will cross-selling will opportunities in past has that a to very selling done maybe the consistently product. even the other which this years remember is the weaker come We base, believe XX customer and doesn't. other have The out that one complimentary. from company Or
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provided our slide we around have XX, cost In synergies. detail more
realization time by year and see by broken the by synergy have could years calendar you both down we As today. from
million year expect key be previous by versus synergies now we estimate achieved of All Some are synergies will two. achieve to of our that $XX million. end these points $XX of the
the see So effect. full will in three year we
that there we plan in period to regulatory approvals, a were providing based how many manner to sources are thoughtfully optimization, operational from was achieve one come breakdown production, material really type such synergies. are detailed a very fully If was the raw nature of and as long purchasing benefit these to synergies of and in which able efficiencies. trying and We extra supply chain of get a it broad from
ready are to Now we them. the ground hit achieve running and
X% The steel product was Europe. revenue aluminum around consistent America and and businesses. expectation with impact detail of lines in we had to in XX, divested businesses our slide million the divest The combined more impact certain one. original the manufacturing provide of of North On the company. mentioned Houghton's We get that of adjusted and as reduce the impact EBITDA over that company. the related variable SG&A impact hit is with time, costs But we less remain with $XX is day we more here will that
Okay.
to on XX. slide move Let's
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actual by the match. to close You in and see in all very this then, below the projected can boxes comparing EBITDA the a consistent all adjusted adjusted EBITDA so, right
see You more time can period. over than this Quaker also Houghton variability had that
On to from out XXXX columns trailing less the factors twelve some to of months, the tried side their key bar performance list we comparing the right last there. the hand impacting so two
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exchange companies adjusted decline to rates. This months. really in Another been between that a the and point XX the to primarily there's item trailing combined foreign EBITDA decline due XXXX out is is
XX. next slide, slide the On
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XX EBITDA $XXX trailing months our is Today million. adjusted
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forecasts And don't have magnitude our We the half impacts our our second second for year-over-year face we improvement the same second Overall. in as in the comparisons. the indicate quarter in some adjusted half. expect negative EBITDA to
begin back improvements million which will also be the loaded will five into $X next be quarter. will And estimate months. we addition, synergy In see the to over approximately that we fourth
XX, we're cost after slide What provides an then we synergies. that and achieve this the combined, picture. On happens now indicative
two you can months rate get goes will we of be which quite years from we growth EBITDA a be $XXX, $XXX also we trailing and change to adjusted As and see our believe this by run from EBITDA million. generate our to adjusted EBITDA twelve time over which million now point will will additional is the $XXX Quaker's
be at the gross we company XX% On of are A expand synergies cost is that to are the once cost points margin end synergies other on the Also expect to margin to points once currently, slide, year two. is the of the estimate is XX% combined not we achieved achieved. couple about the to which our which on slide EBITDA adjusted will XX% percentage and our increase XX. what of expect the by X slide
going be some forward. that helpful people We performance information as have may additional given model our
priorities. And slide XX provides our capital allocation
will pay target focusing to they debt we will going adjusted our like We opportunities will believe mentioned continue two a two is done forward years dividend term short be a at consistently XX past acquisition in as EBITDA now. paying We look will to I down nature. below over we in although continue half. have we And small the years. the earlier be and two and debt, from be half, a to long We'll term also to on two
am make remarks. On slide pleased. I concluding my XX, I really
for is future adjusted plus million sheet a a to $XXX and EBITDA this will has we We be a that that be now our and and balance we point and positioned begin and Company well it's range debt are above from company has will targeted well-positioned years can achieved journey at market we the as Quaker Two Houghton. is synergies growth acquisitions. make
So I'd with up like that, questions. it for open to
