ST. PAUL, MN — Cleaning and pest-control services company Ecolab Inc. has agreed to buy the water treatment company Nalco Holding Company, according to a press release.
The deal is for roughly $5.4 million and will help place the company in a better position in the water management business, the release stated.
According to the release, Nalco shareholders will receive either 0.7005 shares of Ecolab stock or $38.80 per share in cash, which is a 34 percent premium to Nalco''s closing stock price of $28.87 on Tuesday.
"Through our participation in the water sector and our strategic planning work, we identified water management as a key future growth segment for us given its growth characteristics and importance to our customers," said Ecolab Chairman, President and Chief Executive Officer (CEO) Douglas M. Baker Jr.
The transaction, which has received unanimous approval from both companies'' boards, is expected to close in the fourth quarter, the release noted.
Click here to read the complete release.