Oppenheimer Comments On Ecolab's Nalco Deal

According to Oppenheimer, Ecolab ECL announced that it is acquiring Nalco (NLC) for $38.80/share, or $8.1B FV, with 70% being paid in ECL stock and 30% in cash. Oppenheimer said that ECL expects, “1) the deal to be immediately accretive to both '11E and '12E EPS; 2) the combined entity to earn $3.00/sh in '12 (18.5x P/E), above the $2.88 we forecast previously; 3) $150MM in cost synergies; and 4) expects to retain an investment grade rating.” Ecolab closed yesterday at $55.39.