Ionics acquires Ecolochem in $338 million deal

Ionics, the MA-based manufacturer of water treatment equipment, has signed a definitive agreement to acquire Norfolk, VA-based Ecolochem and its affiliated companies for $200 million in cash and approximately 4.91 million shares of Ionics common stock.

Based on the 30 trading days' average closing stock price ended November 17, 2003, the stock portion of the consideration would be valued at $138 million.

Ecolochem, a privately held company headquartered in Norfolk, VA, is a provider of emergency, short and long-term mobile water treatment services to the power, petrochemical and other industries. The transaction is expected to augment Ionics' existing capabilities and result in a global water technology company with pro forma projected 2004 combined revenues of approximately $460 million.

This transaction was unanimously approved by Ionics' board of directors and agreed to by Ecolochem's shareholders.

The acquisition is expected to close in early 2004. The transaction is subject to Hart-Scott-Rodino Act review, approval by Ionics shareholders, and other customary closing conditions.