ST. PAUL, Minn.--(BUSINESS WIRE)--
Ecolab announced that it has closed on the previously announced sale of
its Vehicle Care business to Zep Inc. (NYSE-ZEP) for approximately $120
million in cash. Vehicle Care had 2011 sales of $66M.
Net after tax proceeds from the sale were approximately $75M and will be
used to repay debt and for general corporate purposes.
The sale of the Vehicle Care business is expected to have an
approximately $0.03 per share dilutive impact on Ecolab's 2013 earnings
per share.
Douglas M. Baker, Jr., Ecolab's Chairman and Chief Executive Officer
commented on the announcement, saying, "We are pleased that this
transaction provides our customers with a strong partner who will
continue providing the product and service support they need to continue
to achieve excellent results, as well as a firm that enhances
opportunities for our former colleagues to grow and advance in the
industry. We once again thank them for their many contributions in the
past and wish them every success in the future."
Cautionary Statements Regarding Forward-Looking Information
This
news release contains various "Forward-Looking Statements" within the
meaning of the Private Securities Litigation Reform Act of 1995. These
include statements concerning the use of the proceeds from the Vehicle
Care sale and the impact of the transaction on 2013 earnings per share.
These statements, which represent Ecolab's expectations or beliefs
concerning various future events, are based on current expectations that
involve a number of risks and uncertainties that could cause actual
results to differ materially from those of such Forward-Looking
Statements. We caution that undue reliance should not be placed on
Forward-Looking Statements, which speak only as of the date made.
Additional risks and uncertainties that may affect operating results and
business performance are set forth under Item 1A of our most recent Form
10-Q and the company's other public filings with the Securities and
Exchange Commission (the "SEC") and include our ability to integrate
Nalco and realize the anticipated benefits of the merger as well as to
close and integrate the proposed acquisition of Champion; our ability to
attract and retain high caliber management talent to lead our business;
difficulty in procuring raw materials or fluctuations in raw material
costs; our ability to execute key business initiatives; vitality of the
markets we serve; the impact of worldwide economic factors such as the
worldwide economy, credit markets, interest rates and foreign currency
risk; exposure to economic, political and legal risks related to our
international operations; the costs and effects of complying with laws
and regulations relating to the environment and to the manufacture,
storage, distribution, sale and use of our products; changes in laws,
regulations or accounting standards; our ability to develop competitive
advantages through innovation; our substantial indebtedness; information
technology systems failures; the ability to acquire complementary
businesses and to effectively integrate such businesses; restraints on
pricing flexibility due to contractual obligations; pressure on
operations from consolidation of customers, vendors or competitors;
public health epidemics; potential losses arising from the impairment of
goodwill or other assets; potential loss of deferred tax assets; the
occurrence of litigation or claims, including related to the Deepwater
Horizon oil spill; acts of war, terrorism, severe weather or natural or
man-made disasters; the loss or insolvency of a major customer, supplier
or distributor; and other uncertainties or risks reported from time to
time in our reports to the SEC. In light of these risks, uncertainties,
assumptions and factors, the forward-looking events discussed in this
communication may not occur. We caution that undue reliance should not
be placed on Forward-Looking Statements, which speak only as of the date
made. Ecolab does not undertake, and expressly disclaims, any duty to
update any forward-looking statement whether as a result of new
information, future events or changes in expectations, except as
required by law.
About Ecolab
With 2011 pro forma 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. For more Ecolab news and information, visit www.ecolab.com.
(ECL-A)
Ecolab Inc.
Investor Contacts:
Michael Monahan, 651-293-2809
or
Lisa
Curran, 651-293-2185
Source: Ecolab Inc.
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