Hydrocarbon Processing Copying and distributing are prohibited without permission of the publisher
Email a friend
  • Please enter a maximum of 5 recipients. Use ; to separate more than one email address.



Ecolab to exclude refining solutions business from Champion Technologies deal

12.03.2012  | 

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 about $50 million.

Keywords:

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.



Have your say
  • All comments are subject to editorial review.
    All fields are compulsory.

Loraine Huchler, P.E., CMC
12.06.2012

This is good news for refineries - the alternative, a reduction in the number of water treatment suppliers reduces the competition, potentially increases prices and stifles innovation. Ironically, Champion's downstream process and water solutions business has some innovative technologies - potentially making them an attractive acquisition!

Related articles

FEATURED EVENT

Boxscore Database

A searchable database of project activity in the global hydrocarbon processing industry

Poll

Should the US allow exports of crude oil? (At present, US companies can export refined products derived from crude but not the raw crude itself.)


83%

17%




View previous results

Popular Searches

Please read our Term and Conditions and Privacy Policy before using the site. All material subject to strictly enforced copyright laws.
© 2013 Hydrocarbon Processing. © 2013 Gulf Publishing Company.