logo
Share SHARE
FONT-SIZE Plus   Neg

Ecolab Amends Champion Technologies Acquisition Agreement

Cleaning and pest-control service provider Ecolab Inc. (ECL) announced Monday that it has amended its acquisition agreement with Permian Mud Service, the parent company of Champion Technologies and Corsicana Technologies, such that Champion's downstream process and water solutions business will be spun-off to Permian's shareholders prior to the acquisition by Ecolab, and Ecolab will not acquire those specific operations. 2011 sales for the downstream business, which primarily serves refineries, were approximately $50 million.

The value of the transaction will be reduced to $2.16 billion from $2.2 billion, subject to further adjustment as provided in the acquisition agreement. Ecolab said it believes the amendment will not have a significant impact on the deal economics, and continues to expect the transaction to deliver approximately $0.12 accretion to adjusted diluted earnings per share in 2013 increasing to approximately $0.50 per share by 2016.

Ecolab said it continues to expect closing of the Champion acquisition to occur by year-end 2012, subject to regulatory clearance and other customary closing conditions.

In October, Ecolab had said that it agreed to buy privately-held specialty chemical company Champion Technologies and its related company Corsicana Technologies for about $2.2 billion in cash and stock. Ecolab said it would pay about $1.7 billion in cash and issue about 8 million shares of its common stock.

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Quick Facts

Editors Pick
French car maker Renault SA reported Friday higher profit in its fiscal 2015, with strong growth in automotive profit and revenues. The company announced higher dividend. Looking ahead, for fiscal 2016, Renault expects to increase group revenues at constant exchange rates and improve group operating margin. Shares of Rolls-Royce Holdings Plc were gaining around 13 percent in the morning trading in London after the engine maker reported more-than doubled profit in its fiscal year 2015, with lower one-time items. Underlying earnings were hurt by weakness in Marine markets. Further, the company halved its dividends, and still expects lower revenues next year. German steel giant ThyssenKrupp AG reported a loss in its first quarter, compared to last year's profit as sales and orders were hurt by sharp deterioration in materials businesses. The company said its overall performance in the first quarter was within its full-year forecast corridor. Looking ahead, the company continues to expect higher net income and flat sales for fiscal 2016.
comments powered by Disqus
RELATED NEWS
Trade ECL now with 
Follow RTT