Apergy to Combine With Ecolab’s Upstream Energy Business in a Tax-Free Transaction, Creating a Global Leader in Production-Optimization Solutions

  • Global leader for life of field production optimization solutions, including artificial lift equipment, chemical solutions, and digital technologies, offering customers increased productivity over the well lifecycle, with approximately 80% of revenue from production-related product lines
  • Combined business expected to generate pro forma revenue of approximately $3.5 billion and adjusted EBITDA of approximately $615 million (before synergies) in 2019 with strong recurring revenue, cash flow, and through-cycle performance
  • Expected annual run-rate cost synergies of $75 million within 24 months of closing, plus incremental sales growth opportunities, benefiting both sets of shareholders
  • Financially compelling transaction with strong benefits for Apergy and Ecolab shareholders, creating a combined company enterprise value of approximately $7.4 billion, including approximately $3.9 billion1 of stock to Ecolab shareholders and assumption of estimated Upstream Energy net debt of approximately $492 million; existing Apergy and Ecolab shareholders to own 38% and 62% of the combined entity, respectively
  • Expanded and diversified global customer base, including international and national oil companies, large independents, and oil field services companies
  • Significant geographic footprint with ~40% of revenue in international markets and established international platform for expansion opportunities
  • Strong balance sheet with pro forma net leverage of approximately 1.7x2 excluding cost synergies and 1.5x including cost synergies, with combined company expected to de-lever even more given significant pro forma free cash flow generation
  • Apergy to host conference call today at 8:30am Eastern / 7:30 am Central

Read more at https://investors.apergy.com/news-releases/news-release-details/apergy-combine-ecolabs-upstream-energy-business-tax-free