Ecolab to use merge and acquisition consultants?
A merger between Ecolab and Nalco Holding has been announced.
Ecolab has announced it has completed international business negotiations with Nalco Holding about a merger.
The cost of the arrangement is put at $8 billion (£5 billion) and shareholders in the latter firm will be offered a deal whereby they get 0.7005 shares of Ecolab common stock or $38.80 per Nalco share in cash.
Douglas Baker, Ecolab's chairman, president and chief executive officer, called the move a "strong and vital step" in expanding its business portfolio.
"Key to Ecolab's long record of consistent and above-average growth has been our ability to continually expand the markets we serve ... and execute," Mr Baker observed.
Nalco - whose European headquarters can be found in Switzerland and claims to be the world's leading water treatment and process improvement company - made sales worth $4 billion in 2010.
Chairman of the organisation Erik Fyrwald noted there has long been admiration for Ecolab and as such, the deal is "compelling" and one that should improve the business.
Posted by Ken Hayes