ICS Magazine

Ecolab to Buy Remaining Half of Henkel

December 8, 2000
St. Paul, Minn. (Reuters) -- Ecolab Inc. will buy the remaining half of the Henkel-Ecolab joint venture from its venture partner, Dusseldorf, Germany-based Henkel KGaA , for about $460 million-$490 million at current foreign exchange rates.

Ecolab, a maintenance and services supply company, said it sees a one-time, pretax charge in the fourth quarter of about $5 million to $10 million to cover office closures, early retirements, terminations and other management actions.

It also said it sees a $2.4 million charge, net of tax, relating to a change in accounting principles.

The company said the sale of its Jackson dish machine manufacturing unit for $36 million, announced last month, will offset the charges.

As a result, St. Paul, Minnesota-based Ecolab estimated its earnings per share in the fourth quarter would be would rise in a range of about 5 to 7 cents in the fourth quarter and full year, incremental to the $1.50 per share net it forecast previously.

According to a survey taken by First Call/Thomson Financial, the mean estimate was for a profit of 37 cents per share in the fourth quarter.

The company also said it named John Spooner as chief executive of the combined company, and said former chief executive Bruno Deschamps will serve as president and chief operating officer.