Ecolab and Cascade Enter into Stockholder Agreement
ST. PAUL, Minn.--(BUSINESS WIRE)--
Ecolab Inc. announced today that it has entered into a stockholder
agreement with Cascade Investment, L.L.C. and the Bill & Melinda Gates
Foundation Trust related to their investments in Ecolab. Ecolab has
amended its stockholder rights plan so that Cascade and the Foundation
Trust would in the future be able to acquire up to 25% of Ecolab's
outstanding shares. Cascade currently holds 27,001,348 shares, or 9.3%,
and the Foundation Trust currently holds 4,366,425 shares, or 1.5%, of
Ecolab's outstanding shares.
Under the agreement, if Cascade and the Foundation Trust own in the
aggregate 15% or more of the outstanding Ecolab shares, Cascade and the
Foundation Trust have agreed not to seek control of, or encourage others
to seek control of, the company or the Board of Directors, and
accordingly they will support the Ecolab Board's director nominees as
long as a Cascade representative is given the opportunity to serve as a
director. Currently, Michael Larson, Chief Investment Officer for
William H. Gates III, and the business manager for Cascade, is an Ecolab
Douglas M. Baker, Jr., Ecolab's Chairman and Chief Executive Officer
commented, saying, "Cascade and the Foundation Trust have a demonstrated
record of making significant investments in companies for the long-term
and being constructive shareholders. We have already enjoyed that
experience with them over the past two years since they initiated their
positions in our company. We look forward to continuing to work in
partnership with all of our shareholders as we work to grow our business
and develop further superior returns."
The stockholder agreement has been included as an exhibit in Ecolab's
current report on Form 8-K, filed May 7, 2012.
With 2011 pro forma annualized sales of $11 billion and more than 40,000
employees, Ecolab Inc. (NYSE: ECL) is the global leader in water,
hygiene and energy technologies and services that provide and protect
clean water, safe food, abundant energy and healthy environments. Ecolab
delivers comprehensive programs and services to the food, energy,
healthcare, industrial and hospitality markets in more than 160
countries. More Ecolab news and information is available at www.ecolab.com.
Michael Monahan, 651-293-2809
Source: Ecolab Inc.
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