Investments in Associated Companies

12 Months Ended

Dec. 31, 2021

Investments in Associated Companies [Abstract]

Investments in Associated Companies [Text Block]

Note 17 – Investments in Associated Companies

As of December 31, 2021, the Company held a

50

% investment in and had significant influence over Nippon Quaker Chemical,

Ltd. (“Nippon Japan”), Kelko Quaker Chemical, S.A. (“Kelko Panama”) and Houghton Korea acquired in 2019 in connection with the

Combination, and held a

32

% investment in and had significant influence over Primex, Ltd. (“Primex”).

The carrying amount of the Company’s equity investments as of December 31, 2021 was $

95.3

 million, which includes

investments of $

66.4

 million in Houghton Korea; $

21.5

 million in Primex; $

7.1

 million in Nippon Japan; and $

0.3

 million in Kelko

Panama.

The Company also has a

50

% equity interest in Kelko Venezuela. Due to heightened foreign exchange controls, deteriorating

economic circumstances and other restrictions in Venezuela, during 2018 the Company concluded that it no longer had significant

influence over this affiliate. Prior to this determination, the Company historically accounted for this affiliate under the equity method. 

As of December 31, 2021 and 2020, the Company had

no

 remaining carrying value for its investment in Kelko Venezuela.

The following table is a summary of equity income in associated companies by investment for the years ending December 31,

2021, 2020 and 2019:

Year Ended December 31,

2021

2020

2019

Houghton Korea

$

3,808

$

5,241

$

2,337

Nippon Japan

461

853

850

Kelko Panama

154

107

55

Grindaix (1)

(37)

-

-

Primex

4,993

1,151

1,822

Total equity in net income of associated companies

$

9,379

$

7,352

$

5,064

(1) In February 2021, the Company acquired a

38

% ownership interest in Grindaix. From that date through September 2021

when the Company purchased the remaining interest of Grindaix, the Company accounted for its

38

% interest under the

equity method of accounting and recorded equity in net income of associated companies. See Note 2 of Notes to

Consolidated Financial Statements.

As the Combination closed on August 1, 2019, the Company included five months of equity income from Houghton Korea in its

December 31, 2019 Consolidated Statement of Income.