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
Delta Air Lines Inc. (DAL) pilots, represented by the Air Line Pilots Association International, are picketing on Friday at several airports across the country. The pilots said the picketing was to raise the sense of urgency in ongoing contract negotiations. The negotiations between the pilots... Charter Communications, and its recently acquired subsidiary Time Warner Cable, have been regularly overcharging its consumers to a tune of $7.2 million per year, according to a report from the U.S. Senate's Permanent Subcommittee on Investigations. According to the report, Time Warner Cable over-billed... Popular photo sharing network Instagram is adding a new translation button on its pages, so that the global crowd can read and enjoy the captions and comments given for the photographs uploaded. The new update will be available from next month onward.
comments powered by Disqus
Follow RTT