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Cleaning and pest-control company Ecolab to buy Nalco Holding for about $5.4 billion
ST. PAUL, Minn. (AP) ' Cleaning and pest-control services company Ecolab Inc. is buying the water treatment company Nalco Holding Co. for about $5.4 billion in an effort to expand its product line.
Under the deal announced Wednesday, Nalco shareholders will receive either 0.7005 shares of Ecolab stock or $38.80 per share in cash. Both companies board have approved it.
Ecolab is based in St. Paul, Minnesota, and Nalco is in Naperville, Illinois.
The cash offer is a 34 percent premium to Nalco's closing stock price on Tuesday of $28.87.
In addition to the price being paid for the shares, Ecolab will assume about $2.7 billion of Nalco debt, pushing the value of the overall transaction to about $8.1 billion.
The transaction is expected to close in the fourth quarter.