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Ionics, Incorporated, an internationally recognized leader in water purification and wastewater treatment, has completed the acquisition of Ecolochem, Inc., and its affiliated companies for approximately $219 million in cash and 4.65 million shares of Ionics common stock.
Ecolochem, a privately held company headquartered in Norfolk, VA, is a leading provider of emergency, short and long-term mobile water treatment services to the power, petrochemical and other industries. This transaction significantly increases Ionics' ability to offer extensive outsourced water services to its customer base.
In connection with this transaction, Ionics obtained a $255 million banking facility arranged by UBS Securities LLC, Fleet Securities, Inc. and Banc of America Securities LLC. Included in this facility is a $175 million secured senior loan and an $80 million revolving credit facility.
"I am delighted by the overwhelming support that our shareholders have given us for this acquisition. At our special meeting, 91% of the outstanding shares were voted, and more than 98% of the shares voting on the matter were voted to support the transaction. Clearly our shareholders share our vision for the future of Ionics and for the importance of this transaction," said Douglas Brown, chief executive officer of Ionics. "Our shareholders also passed the proposed modifications to our stock incentive plan. This is important as we focus on using performance-based compensation arrangements to reward our employees."
"I am looking forward to successfully integrating Ecolochem into Ionics. The opportunity to become the leader in outsourced water services is exciting to all of us at Ecolochem and Ionics, and I am committed to realizing this opportunity to its full potential," Lyman B. Dickerson, president of Ecolochem stated. Dickerson has joined Ionics as Vice President of Ionics' Water Systems Division.
Following the closing of the transaction, Mr. Dickerson and Frederick T. Stant became directors of Ionics.