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Note
5. Other Business Acquisitions and Divestitures
Business
Acquisitions
Businesses acquired by the company during the years ended December
31, 2001 and 2000, excluding the acquisition of Henkel-Ecolab,
were as follows:
| Business
Acquired |
Date
of Acquisition |
Ecolab
Operating
Segment
– Type of
Business |
Estimated
Annual Sales Prior to Acquisition (millions) |
| |
|
|
(unaudited) |
| 2001 |
|
|
|
Randall
International LLC
– 25% interest |
Jan.
2001 |
Institutional |
$ 8 |
| Envirocare
Service Pte. Ltd.
|
March
2001 |
Asia
Pacific |
1 |
| Microbiotecnica |
July
2001 |
Latin
America |
3 |
| Commercial
Parts & Service, Inc. |
Oct.
2001 |
GCS |
28 |
| 2000 |
|
|
|
Southwest
Sanitary
Distributing Co. (SSDC) |
Feb.
2000 |
Kay |
$24 |
| Spartan
|
Feb. 2000 |
Latin America |
20 |
| ARR/CRS |
June 2000 |
GCS |
4 |
| Dong
Woo Deterpan Co. Ltd. |
June 2000 |
Asia
Pacific |
6 |
| Stove
Parts Supply Co. |
Aug.
2000 |
GCS |
19 |
| Facilitec
Corp. |
Sept. 2000 |
Institutional |
14 |
Zohar
Dalia Soap and
Detergent Factory
(Israel)
– 51% interest |
Sept. 2000 |
Africa/Export |
15 |
| Peterson’s
Commercial Parts & Service |
Nov.
2000 |
GCS |
4 |
Ecolab
S.A.
– 23.5% interest in addition
to prior 51% interest |
Dec. 2000
|
Latin America |
8 |
In
addition, in September 2000, Ecolab purchased a 17 percent equity
interest in FreshLoc Technologies, Inc. FreshLoc is a privately
held developer of wireless food safety technology and is being
accounted for using the equity method.
The total consideration paid by the company for the above 2001
acquisitions was approximately $30 million, of which approximately
$18 million was allocated to goodwill.
The total consideration paid by the company for the above 2000
acquisitions included cash of approximately $90 million and 424,111
shares of common stock with a market value of approximately $14
million issued in the SSDC acquisition, of which approximately
$88 million was allocated to goodwill.
During 1999, the company acquired substantially all of the assets
of Blue Coral Systems. Blue Coral had annual sales of approximately
$30 million and was combined with the company’s existing Vehicle
Care operations. The company also added to its GCS and South Africa
operations through small business acquisitions.
These acquisitions have been accounted for as purchases and, accordingly,
the results of their operations have been included in the financial
statements of the company from the dates of acquisition. Net sales
and operating income of these businesses were not significant
to the company’s consolidated results of operations, financial
position and cash flows.
Gain on Sale of Jackson Business
In November 2000, the company sold its Jackson dishmachine manufacturing
business for cash proceeds of approximately $36 million. The company
realized a gain of $25,925,000 ($14,988,000 after tax), or $0.11
per diluted share. The gain has been included in corporate operating
income for segment reporting purposes. Jackson’s total annual
sales were approximately $40 million, including intercompany sales
to Ecolab. Jackson will continue to supply dishmachines to the
company under a long-term supply agreement.
Net sales, excluding intercompany sales, for the business were
$13.7 million and $13.9 million for 2000 and 1999, respectively.
Operating income, excluding intercompany profit, for the business
was $1.4 million and $1.3 million for 2000 and 1999, respectively.
The consolidated financial statements and accompanying notes reflect
the operating results of the Jackson dishmachine manufacturing
business as a continuing operation in the United States Other
Services segment through the date of disposal (November 9, 2000)
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