Ecolab-Nalco merger: Formidable business union

MANILA, Philippines - The recent merger of Ecolab, Inc. (Ecolab) and Nalco Holding Company (Nalco) has resulted in the emergence of a huge, formidable  US$12 billion global entity with nearly 41,000 employees in more than 170 countries and  with a diversified and robust portfolio  that draws together the best technologies and services  in water, hygiene and energy .

Both companies combined under the name Ecolab, with Nalco becoming a wholly owned subsidiary of Ecolab Inc. while retaining  its brand, Nalco.  At the helm is chairman and CEO Doug Baker.

The merger is considered by many business analysts as a strategic move that would optimize the two companies’ highly complementary capabilities, cultures and business models while driving growth for the benefit of stakeholders and customers

Founded in 1923, Ecolab is the leading global developer and marketer of premium cleaning and sanitizing products and services in the hospitality, institutional and industrial markets. Its customers include many hotels and restaurants worldwide.

Nalco is a global leader in water, energy and waste management solutions, having significant environmental, social and economic impact on the markets it serves. Like Ecolab, it has a rich history dating back to 1928 in Chicago, USA.

 With the two companies’ market leadership, proven technologies, joined expertise, and well-trained personnel, Ecolab is poised to lead the charge in addressing the increasing demand for safe, efficient and sustainable solutions in the areas of energy, water management and food safety and sanitation.  The merger bolsters efforts to broaden connections across customer application areas.

 â€œEcolab and Nalco share the same values,” said Darrell Brown, EVP, Asia Pacific, Ecolab Inc.  â€œOur combined resources position us very well in the global arena, which will help ensure improved profitability and unprecedented growth. We aim doing more for our customers through a broader array of solutions, innovations and service capabilities.”

A higher level of efficiency is also one of the central byproducts of the merger. With cleaning and sanitizing operations accounting for more than 50 percent of water consumption in the F&B businesses, Ecolab sees an opportunity to introduce process synergies in these establishments by including water treatment and automation technology in its service offerings, thereby ensuring its customers that their processes are within safety and sanitation standards even as they cut down on water consumption to save on operational costs and conserve non-renewable resource. 

In the Philippines, Ecolab has been supplying prestigious hotel chains and restaurants with cleaning and sanitizing products since it started operations in July 1991. The company currently has four divisions: institutional, food and beverage, pest elimination and kay chemicals (quick service restaurant markets) providing safe and sustainable hygiene and food safety solutions.

On the other hand, Nalco (Philippines) Inc. has aggressively positioned itself in the water treatment market of the country.  Since its establishment in December 1976, it has continued to gain prominence and leadership in the industry with a roster of customers comprised of some of the Philippines’ biggest corporations.

 â€œThis is an exciting development for the new Ecolab. The merger benefits both companies in terms of shared expertise and core competencies giving us distinct competitive advantages in the industry,” said Hermie Limbo, country director of Ecolab Philippines. “We are optimistic with the immense opportunities this brings to local operations.”