Apergy To Merge With Ecolab's Upstream Energy Business

(RTTNews) - Apergy Corp. (APY) and Ecolab Inc. (ECL) said that their Boards approved a definitive agreement by which Ecolab will separate the Upstream Energy business of Nalco Champion -- which is being renamed ChampionX-- and simultaneously combine it with Apergy.

The merger combines Apergy with Ecolab's ChampionX business, and consists of the drilling, completion, and energy production, chemistry sciences, and solutions operations currently included within Ecolab's Energy segment.

The downstream chemistry solutions business from Ecolab's former Energy segment will be retained by Ecolab.

Somasundaram, current Apergy President and Chief Executive Officer, will serve as President and Chief Executive Officer of the combined Company.

Jay Nutt, current Chief Financial Officer of Apergy, will serve as Chief Financial Officer of the Combined Company, and Deric Bryant, current Executive Vice President & President of Ecolab's Upstream Energy business, will serve as Chief Operating Officer of the combined company.

Daniel Rabun, current Chairman of Apergy, will serve as Chairman of the combined company. The combined company will be headquartered in The Woodlands, Texas, and will have operations in over 55 countries.

Existing Ecolab shareholders will own about 62% of the combined company on a fully diluted basis, with existing shareholders of Apergy owning about 38% of the combined company on a fully diluted basis.

The transaction is expected to be completed by the end of the second quarter of 2020.