Ecolab completes sale of vehicle care unit, amends Champion deal

Author:
Updated:
Original:

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.

In November, the U.S. Department of Justice asked Ecolab for more information regarding its plan to acquire Champion Technologies.

Ecolab still expects the acquisition to close before the end of the year, subject to regulatory clearance and other customary closing conditions.

Next Up

Related

Ecolab to sell Vehicle Care operations for $120M

St. Paul-based Ecolab has agreed to sell all assets of its vehicle care business to Atlanta-based Zep Inc. for $120 million in cash, the Star Tribune reports. Zep makes cleaning and maintenance solutions for commercial, industrial, institutional and consumer end-markets.

Ecolab's net income, sales surge in third quarter

Ecolab Inc., the St. Paul-based cleaning and pest-control giant, says its net sales jumped 74 percent to $3 billion in the third quarter, RTTNews.com reports. Net income was also up 54 percent compared to the same period a year earlier.