St. Paul-based Ecolab Inc., provider of commercial and industrial cleaning products and services, has finalized the sale of its vehicle care business to Zep Inc., the Star Tribune reports. The Atlanta-based maker of cleaning and maintenance supplies purchased the operation for about $120 million.
"We expect the combination of our respective sales organizations with best-in-class vehicle care solutions will allow us to capitalize on growth opportunities in the $1 billion U.S. vehicle care marketplace in a way that is accretive to earnings," John Morgan, Zep's CEO, said in a news release. "Furthermore, the attractive cash flow generation of our overall business will allow us to focus efforts on quickly reducing debt in a meaningful way."
Meanwhile, Ecolab has amended its acquisition agreement with the parent company of Houston-based Champion Technologies and Corsicana Technologies. According to a company news release, Ecolab will not acquire Champion's downstream process and water solutions business. The value of the transaction will also be reduced to $2.16 billion from $2.2 billion, which was announced in October.
Ecolab still expects the acquisition to close before the end of the year, subject to regulatory clearance and other customary closing conditions.