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Ecolab to clean up with Holchem
Posted on Thursday, 06 December 2018 15:45
Ecolab is buying Holchem Group, a UK-based supplier of hygiene and cleaning products for the food and beverage industry, for an undisclosed sum.
The transaction, which will enable the buyer to better serve its customers, is expected to complete in early 2019, subject to approval from the Competition and Markets Authority.
Formed in 1982, Holchem manufactures chemical cleaning products, which it supplies to customers including breweries, dairy processing and retail outlets such as supermarkets.
In 2017, it posted sales of around GBP 43.00 million.
Through the deal, the buyer gains access to the target’s range of products, including multi-purpose cleaners, sanitisers, destaining powder, as well as disinfectants, floor polish and washing up liquid.
Sam de Boo, senior vice-president of Ecolab said: “Holchem’s strong technical capabilities and service model align well with Ecolab’s commitment to helping customers uphold stringent food safety standards.”
Headquartered in Minnesota, the buyer claims to be a global leader in water, hygiene and energy technologies, serving companies in the healthcare, industrial and oil and gas markets.
It has over 3.00 million customers and 48,000 employees, and its products and operations include air separation, automation monitoring and control for water and process equipment, as well as overhead systems for refineries.
For the quarter ended 30th September 2018, it posted sales of USD 3.74 billion, an increase on USD 3.56 billion in the corresponding period of 2017.
According to Zephyr, the M&A database published by Bureau van Dijk, there have been 58 deals targeting soap and cleaning compound manufacturers announced worldwide since the beginning of 2018.
Interestingly, the same company was targeted in all of the top three deals by value in the sector, with the largest involving JAB Holdings selling a 1.1 per cent stake in household cleaning products manufacturer Reckitt Benckiser Group for GBP 474.53 million.
© Zephus Ltd