Ecolab To Boost Food Safety Standards With Holchem Buyout
Zacks Investment Research | Dec 06, 2018 10:03PM ET
Ecolab Inc. (NYSE:ECL) recently announced that it will acquire Holchem Group Limited to enhance food safety standards, and boost the Food & Beverage and Nalco Water units in Europe.
However, the buyout is yet to be cleared by the Competition and Markets Authority, which is expected to take place by early 2019. Ecolab and Holchem Group will operate separately until the acquisition is approved. The financial terms of the deal have been kept under wraps.
On completion of the acquisition, management at Ecolab is looking forward to better serve the customers of the food and beverage and foodservice industry in Ireland, the United Kingdom and entire Europe.
About Holchem Group
Holchem Group operates in the United Kingdom and Ireland. It is a leading supplier of hygiene and cleaning products and services for the food and beverage, foodservice and hospitality industries.
The company recorded sales of £43 million or $56 million in 2017.
Ecolab’s Food & Beverage Offerings
At the Food & Beverage unit, Ecolab serves the Beverage processing, Cheese processing, Meat, Poultry & Seafood, Biofuels & Ethanol, Dairy Processing, Brewery & Winery and Food Processing markets.
Notably, Ecolab’s Food & Beverage offerings come under the Global Institutional revenue segment. In the third quarter of 2018, revenues improved 6% to $1.34 billion at this segment, courtesy of robust growth in the Specialty business. North America and Asia Pacific also witnessed solid growth in the same period.
The latest development highlights Ecolab’s special emphasis on Europe.
Market Prospects Bright
Per statista, the global Food & Beverage market has a net worth of $93,582 million in 2018. Markedly, the market value is expected to multiply at a CAGR of 10.3% to $152,677 million by 2023.
Impressive Stock Performance
Ecolab’s stock has outperformed its Zacks Investment Research
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