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
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
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.