Gulf Oil Corporation, which is a part of India's Hinduja group, has said that it will acquire US-based specialty chemicals maker Houghton International through its UK subsidiary.

Gulf Oil said in a statement that it will purchase 100 per cent stake in Houghton from a US-based private equity fund for $1.05 billion or about Rs 5,685 crore. AEA Investors of New York had acquired Houghton International in 2007.

Company officials indicated that the deal was finalized this morning and the transaction is expected to be completed in about two months. Hinduja was keenly interested in the acquisition as the global supplier of metalworking fluids segment offers opportunities for growth. The acquisition will be subject to customary closing conditions, according to the officials.

"An agreement was signed for the acquisition by its wholly owned subsidiary in the UK on November 6, 2012, with the sellers, a US-based private equity fund," the company said in a filing with the Bombay Stock Exchange (BSE).

Houghton is involved in the production of oils and lubricants for the automotive, steel and other industries. It also produces specialty chemicals for offshore oil exploration and the production industry.

Gulf Oil President Ravi Chawla had indicated much earlier that the company will make acquisitions to expand its lubricant-making capacity by at least 50,000 metric tons a year. The new acquisition will boost its presence across various markets around the world.