Ecolab agreed to acquire the paper chemicals business of Georgia-Pacific for an undisclosed price, company officials announced Friday.
Once the deal closes, the purchase will give the St. Paul-based cleaning and sanitizing chemicals giant an additional $43 million in annual revenue and enhance Ecolab's "growing" position in the tissue, towel and packaging/board segments of the paper business, officials said.
The acquisition is expected to be completed before the end of the year.
By adding Georgia-Pacific's paper chemicals business to its water business, Ecolab expands its ability to help paper-producing customers improve their internal plant efficiencies, water usage and save energy.
"This acquisition will enable us to provide additional value to our customers," said Christophe Beck, the executive vice president and president of Ecolab's Nalco Water division. "The chemistries gained through this transaction will complement our existing solutions and provide greater opportunity to customize end-to-end programs that meet the needs of our customers."
The deal is the latest small acquisition for Ecolab, which is working to grow in less-volatile areas that are not associated with the energy business.
In January, Ecolab bought Michigan-based engineering firm Abednego Environmental Services, which specializes in water recycling, paint booth management and waste treatment services for auto manufacturers such as Ford Motor Co. That deal added $40 million to Ecolab's $13 billion heft.
Last year, Ecolab bought Laboratoires Anios, a France-based chemicals firm that makes hygiene products for food and beverage processors. It generates about $245 million a year in revenue and employs 700 people.
In 2014, Ecolab bought a German pest control services firm and the Florida-based AKJ Industries Inc., a steel and refinery processing and specialty chemicals company. In 2013, it bought a Purate water treatment division based in Amsterdam.
Ecolab's stock fell 66 cents a share to close at $128.61 Friday.