Nalco will merge with a subsidiary of Ecolab in a transaction valued at approximately $8billion, including assumed Nalco net debt. The deal, which was unanimously approved by both boards of directors, is expected to be completed in the fourth quarter of the year, subject to customary regulatory and shareholder approvals. The name of the combined company has not been revealed.
Water management is identified as a key future growth segment for Ecolab, says Douglas M. Baker, Jr Ecolab’s chairman, president and CEO.
“This merger is a strong and vital step in broadening our business platform and enhancing our global growth opportunities,” he added. “Nalco is the global leader with deep expertise in programs and services to enhance water process efficiency, extend asset life, and improve their customers' end products. Nalco’s water and oil and gas services end markets in particular represent excellent long-term growth potential as the world deals with the quality, cost and availability of those key natural resources.”
Nalco’s chairman, president and CEO J. Erik Fyrwald said: “This is a strategically and financially compelling transaction that brings together two highly complementary businesses, combining Nalco’s leading positions in water and energy services with Ecolab’s strength in the food and beverage, healthcare and institutional markets.”
