Ecolab to exclude refining solutions business from Champion Technologies deal
Ecolab on Monday amended its acquisition agreement with Permian Mud Service, the parent company of Champion Technologies, so that Champion's downstream process and water solutions business will be spun-off to Permian shareholders prior to the Ecolab acquisition.
As such, Ecolab will not be acquiring those specific operations. 2011 sales for the downstream business, which primarily serves refineries, were approximately $50 million.
The Ecolab acquisition of Champion Technologies was first announced in October.
Accordingly, 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, according to the company.
Ecolab 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.
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