Acquisition expands Ecolab’s Institutional customer base and service
coverage
Ecolab Inc., the global leader in water, hygiene and energy technologies
and services, has reached an agreement to acquire the U.S. operations of
Charlotte, N.C.-based Swisher Hygiene Inc. (NASDAQ: SWSH) for
approximately $40 million in cash. Swisher Hygiene provides hygiene and
sanitizing solutions for the foodservice, hospitality, retail and
healthcare markets. Sales in 2014 for the operations included in the
agreement were approximately $176 million.
“This attractive transaction will expand our Institutional customer base
and service coverage. The addition of Swisher Hygiene’s U.S. portfolio
of independent restaurants complements Ecolab’s presence in national
restaurant chains,” said Douglas M. Baker, Jr., Ecolab chairman and
chief executive officer. “We look forward to welcoming Swisher Hygiene
employees and customers to Ecolab, and growing with them as we work to
make the world cleaner, safer and healthier.”
Founded in 1986, Swisher Hygiene has 1,000 employees in the U.S.,
primarily in field sales and service, and serves approximately 30,000
businesses. Swisher Hygiene offers a range of products and services for
the institutional foodservice industry, including warewashing and
foodservice cleaning and sanitizing products and services.
The transaction is expected to close in the fourth quarter of 2015,
subject to Swisher Hygiene stockholder approval and customary closing
conditions. Assuming that close date, Ecolab expects the transaction to
be very modestly dilutive over the first twelve months beginning in the
fourth quarter of 2015, and become accretive thereafter.
About Ecolab
A trusted partner at more than one million customer locations, Ecolab
(ECL) is the global leader in water, hygiene and energy technologies and
services that protect people and vital resources. With 2014 sales of $14
billion and 47,000 associates, Ecolab delivers comprehensive solutions
and on-site service to promote safe food, maintain clean environments,
optimize water and energy use, and improve operational efficiencies for
customers in the food, healthcare, energy, hospitality and industrial
markets in more than 170 countries around the world. For more news and
information, visit www.ecolab.com.
Follow us on Twitter @ecolab
or Facebook at facebook.com/ecolab.
Cautionary Statements Regarding Forward-Looking Information
This communication contains certain statements relating to future events
and our intentions, beliefs, expectations and predictions for the future
which are forward-looking statements as that term is defined in the
Private Securities Litigation Reform Act of 1995. Words or phrases such
as "will likely result," "are expected to," "will continue," "is
anticipated," "we believe," "we expect," "estimate," "project," "may,"
"will," "intend," "plan," "believe," "target," "forecast" (including the
negative or variations thereof) or similar terminology used in
connection with any discussion of future plans, actions or events
generally identify forward-looking statements. These forward-looking
statements include, but are not limited to, the expected closing of the
acquisition of the U.S. operations of Swisher Hygiene and statements
regarding the acquisition’s impact on earnings. These statements are
based on the current expectations of management of the company. There
are a number of risks and uncertainties that could cause actual results
to differ materially from the forward-looking statements included in
this communication. These risks and uncertainties include (i) the risk
that the conditions to the closing of the acquisition may not be
satisfied, (ii) the risk that a material adverse change, event or
occurrence may affect the company or the acquired operations prior to
the closing of the acquisition and may delay the acquisition or cause
the company to abandon the acquisition; (iii) problems that may arise in
successfully integrating the businesses of the company and the acquired
operations, which may result in the combined business not operating as
effectively and efficiently as expected, (iv) the possibility that the
acquisition may involve unexpected costs, unexpected liabilities or
unexpected delays, (v) the risk that the businesses of the company or
the acquired operations may suffer as a result of uncertainty
surrounding the acquisition and (vi) the risk that disruptions from the
transaction will harm relationships with customers, employees and
suppliers. In particular, the ultimate results of any integration and
business improvement actions for the acquired operations, including cost
synergies, depend on a number of factors, including the development of
final plans, the time necessary to develop and implement the integration
and other business improvement initiatives and the level of success
achieved through such actions in improving competitiveness, efficiency
and effectiveness.
Additional risks and uncertainties that may affect operating results and
business performance are set forth under Item 1A of our most recent Form
10-K, and our other public filings with the Securities and Exchange
Commission (the "SEC") and include the vitality of the markets we serve,
including the impact of oil price fluctuations on the markets served by
our Global Energy segment; the impact of economic factors such as the
worldwide economy, capital flows, interest rates and foreign currency
risk, including a potential additional currency devaluation charge
in Venezuela and reduced sales and earnings in other countries resulting
from the weakening of local currencies versus the U.S. dollar; our
ability to attract and retain high caliber management talent to lead our
business; our ability to execute key business initiatives; potential
information technology infrastructure failures; exposure to global
economic, political and legal risks related to our international
operations including with respect to our operations in Russia; the costs
and effects of complying with laws and regulations, including those
relating to the environment and to the manufacture, storage,
distribution, sale and use of our products; the occurrence of litigation
or claims, including related to the Deepwater Horizon oil spill; our
ability to develop competitive advantages through innovation; difficulty
in procuring raw materials or fluctuations in raw material costs; our
substantial indebtedness; our 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;
potential chemical spill or release; potential class action lawsuits;
the loss or insolvency of a major customer or distributor; acts of war
or terrorism; natural or man-made disasters; water shortages; severe
weather conditions; 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.
(ECL-A)
View source version on businesswire.com: http://www.businesswire.com/news/home/20150813005541/en/
Copyright Business Wire 2015