Apergy completes $4.4bn acquisition of Nalco Champion’s upstream energy unit

Apergy, a Texan oilfield equipment company, has wrapped up its $4.4 billion acquisition of the upstream energy operations of Ecolab’s subsidiary Nalco Champion to create a new combined company called ChampionX.

As part of the terms of the deal signed in late 2019, Apergy has assumed the upstream energy unit’s net debt of around $492 million.

Apergy issued approximately nearly 127 million shares to existing shareholders of Ecolab under the deal terms. In the combined oilfield equipment company, Ecolab’s shareholders hold nearly 62% stake, while the remaining stake of about 38% is held by shareholders of Apergy.

The operations of ChampionX will be drilling, completion, energy production, chemistry sciences, and solutions.

Sivasankaran Somasundaram – President and CEO of ChampionX said: “Our combined company will be a strong and resilient organization with a broad geographic footprint, high quality customer base, and significant recurring revenue. The combination enables us to bring together a unique platform with best-in-class product lines in artificial lift, production chemicals, and digital technology delivered with superior service capabilities to provide the full spectrum of production-optimization solutions to our customers.”

Apergy acquisition of ChampionX. Photo courtesy of John R Perry from Pixabay.