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 InformationThis 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.