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Ecolab to buy services firm Champion Technologies

10.12.2012  | 

Champion is a Houston-based global energy specialty products and services company with approximately 3,300 employees in more than 30 countries. Its 2011 sales were $1.2 billion. Closing is expected to occur by year-end 2012, subject to regulatory clearance and other customary closing conditions.

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Technology company Ecolab on Friday agreed to acquire privately-held engineering services group Champion Technologies in a transaction valued at approximately $2.2 billion.
 
The deal includes Champion’s related company, Corsicana Technologies. The acquisition will be paid through a mix of approximately 75% cash and 25% stock.

Champion is a Houston-based global energy specialty products and services company with approximately 3,300 employees in more than 30 countries. Its 2011 sales were $1.2 billion.

Closing of the deal is expected to occur by year-end 2012, subject to regulatory clearance and other customary closing conditions.

"As a premier company and proven innovator committed to delivering outstanding technology and service, Champion represents a very attractive business that opportunistically became available, enabling us to acquire an outstanding operator," said Douglas M. Baker, Jr., Ecolab CEO.

"Champion’s technology and product strengths in the US and Canada are very complementary to our innovative technology and services in the offshore and international energy markets.

Baker sadded that Champion offers "very attractive growth and an annuity-like revenue model generating steady and predictable earnings patterns similar to our legacy Ecolab businesses."

Meanwhile, Steve Lindley, chairman for Champion Technologies, said" “This is a compelling strategic deal that provides us the possibility to fully capitalize on significant energy market opportunities around the world. We have always regarded Ecolab’s Nalco global energy services as a leader in this marketplace with a similar culture and like-minded focus on serving the customer."

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.

Ecolab said it expects to realize attractive synergies from the Champion transaction totaling a run-rate of approximately $150 million by the end of 2015 through integration activities wholly within the global energy services sector. The deal will not impact the Nalco integration work, according to company officials.



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William
11.01.2012

I think recycling will be a good invmtseent, especially anything that has now ways of recycling plastic. There was one guy who turned all the un-recyclable plastic into railway sleepers and made a fortune. Just remember, in recycling the raw material is free, and in some cases people will pay you to take it away. Its got to be a boomer! Also, plastic is made form oil, and so is a limited resource. There will be an ever increasing need to harvest plastic waste. There are some companies already doing that. mining old land fills for the plastic and the methane fuel form rotting waste. Dirty money .

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