Ecolab to buy energy products firm for $2.2 billion
Ecolab CEO expects $150 million in cost synergies by the end of 2015
ST. PAUL, Minn.—Ecolab Inc. has agreed to acquire privately-held Champion Technologies and its related company Corsicana Technologies in a $2.2-billion cash and stock deal.
Houston, Texas-based Champion sells energy products and services to the oil and gas industry. It posted 2011 sales of $1.2 billion and has about 3,300 employees.
Ecolab’s Chairman and CEO Douglas Baker said he expects $150 million in cost synergies by the end of 2015. The acquisition consists of a mix of approximately 75 per cent cash and 25 per cent stock.
“This transaction represents a rare opportunity to build on our position in a fast growing market by improving our geographic coverage and technology offerings,” said Baker, in a release.
“Champion represents a very attractive business that opportunistically became available, enabling us to acquire an outstanding operator. As a result, we expect [the deal] to be accretive to sales growth, accretive to EBITDA margins and accretive to adjusted EPS,” he said.
Ecolab will pay approximately $1.7 billion in cash and issue approximately 8 million shares of Ecolab common stock, subject to certain adjustments at and after closing.
The transaction is expected to close by year-end and be cash and earnings accretive in 2013.
Ecolab Inc. is a water, hygiene and energy technologies and services company with 2011 sales of $11 billion and more than 40,000 employees.