Oct 12 (Reuters) - Cleaning services company Ecolab Inc
will buy privately held oilfield specialty chemicalsmaker Champion Technologies Inc for about $2.2 billion to tapinto rising demand for products used in oil and natural gasdrilling.
St. Paul, Minnesota-based Ecolab will pay about $1.7 billionin cash and issue about 8 million shares to Champion, subject tocertain adjustments at and after closing. Ecolab's shares closedat $63.67 on the New York Stock Exchange on Thursday.
Ecolab said Champion's global footprint and its products,used in pipelines, hydraulic fracturing and refinery boilers,would help it expand internationally.
"Champion's technology and product strengths in the U.S. andCanada are very complementary to our innovative technology andservices in the offshore and international energy markets,"Ecolab CEO Douglas Baker said in a statement.
Ecolab, whose technologies, chemicals and services are usedin water treatment, pollution control, energy conservation andthe oil industry, bought Nalco Holding Co last year for $5.4billion to build up its business that treats water for the oildrilling and food production industries.
Houston-based Champion, whose competitors includeSchlumberger NV , Halliburton Co and Baker HughesInc , had sales of $1.2 billion last year, Ecolab said.
Two entities associated with Microsoft founder Bill Gatesowned 10.7 percent of Ecolab as of June 30.
Ecolab said in May it would allow them to raise theircombined stake to 25 percent.
Ecolab promotes its environmental credentials, saying ituses the least amount of energy and water and generates lesswaste in the use of its products and services for the cleaningof hotels, restaurants, food plants and oil rigs.
(Reporting by Krishna N Das; Editing by Ted Kerr)
Keywords: CHAMPION DEAL/