Cleaning and pest-control service provider Ecolab Inc. (ECL: Quote) 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
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