Under the terms of the transaction, Nalco shareholders will have the option to receive either 0.7005 shares of Ecolab common stock or $38.80 per Nalco share in cash. In aggregate, Ecolab will issue approximately 68.9 million shares of Ecolab stock and pay approximately $1.6 billion in cash to Nalco shareholders. This represents a fully diluted offer value of $5.4 billion for Nalco’s equity and, inclusive of $2.7 billion in Nalco net debt, a total transaction value of $8.1 billion. The transaction is expected to close in the fourth quarter.
Based in Naperville, IL with operations in more than 150 countries, Nalco offers water management sustainability services focused on industrial, energy and institutional market segments. Nalco delivers environmental, social and economic performance benefits to customers through value-added services in water treatment and management, pollution reduction programs, energy conservation, and oil and gas extraction efficiency and sustainability offerings. Nalco sales were $4 billion in 2010.