) has finally managed to successfully complete the pending
acquisition of Champion Technologies and its related company
Corsicana Technologies for $2.3 billion.
BALCHEM CP CL-B (BCPC): Free Stock Analysis
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Initially, the transaction was expected to close by the end of
2012 but due to certain antitrust-related issues with the U.S.
Department of Justice ("DOJ"), the company had extended its
agreement till Feb 28, which got further delayed to end-March.
Finally, the closing date was set on Apr 15 and the company was
able to meet the deadline following a consent agreement with the
Houston, Texas-based Champion Technologies is a leading specialty
chemical company. Its integrated offerings are an assimilation of
sustainable chemistry, technology and service for the worldwide
oil and gas industry. With employee strength of about 3,200, the
company operates in more than 30 nations. Total sales for
Champion Technologies in 2012 came in at $1.3 billion.
With a background of robust growth, Ecolab is poised to gain
momentum via its aggressive strategy of pursuing acquisitions.
Ecolab acquired Champions to become a giant in the oilfield
chemical business and reduce competition for its Nalco
subsidiary. The acquisition will beef up Ecolab's Global Energy
Services franchise and expand its footprint in the North American
The Champions deal is the company's largest acquisition since the
Nalco buyout. Moreover, the correlated technology and consumer
base of Nalco and Champions ensures that the deal is a strategic
fit for the company as the combined venture will be well
positioned in the global energy market.
Although the deal will no longer be accretive to 2013 earnings by
12 cents as predicted earlier, Ecolab now expects adjusted
earnings per share to increase by 7 cents in 2013. The accretion
will likely increase earnings per share by 50 cents by 2016.
The news boosted investor confidence on this global cleaning and
sanitation products maker, as reflected by the stock reaching a
new 52-week high of $83.24 on Thursday, Apr 11.
Ecolab currently has a Zacks Rank #3 (Hold). Other
chemical-specialty companies such as
Prospect Global Resources
) warrant a look. While Balchem is a Zacks Rank #1 (Strong Buy)
stock, the other two carry a Zacks Rank #2 (Buy).