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 Champions 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
"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.
"Champions 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
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
Ecolabs 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