09.05.00
Ecolab Inc. announced it has entered into a joint venture in Israel with Zohar Dalia Soap and Detergent Factory of Kibbutz Dalia, Israel. The business will directly market cleaning and sanitizing products and services for the institutional and food & beverage markets in Israel. Ecolab previously operated in Israel's institutional market through a distributorship. Ecolab will own 51% of the joint venture and retain operating control of the business; as a result, Ecolab will consolidate the operations of Ecolab-Zohar Dalia in Ecolab's financial statements. Annualized sales of the Ecolab-Zohar Dalia joint venture are expected to be in the $15 million area for 2000. Other terms of the agreement were not announced.
Allan L. Schuman, Ecolab's Chairman, President and Chief Executive Officer commented on the transaction, saying, "With Ecolab's world-class product offerings and Zohar Dalia's local expertise, Ecolab-Zohar Dalia will be well-positioned to provide customers the best product and service solutions available in the institutional and food and beverage markets. In addition, this joint venture enables Ecolab to more directly participate in the fast growing and substantial Israeli economy, and extends our broader presence in the Middle East markets, enhancing our premium service network for our worldwide customers."
Allan L. Schuman, Ecolab's Chairman, President and Chief Executive Officer commented on the transaction, saying, "With Ecolab's world-class product offerings and Zohar Dalia's local expertise, Ecolab-Zohar Dalia will be well-positioned to provide customers the best product and service solutions available in the institutional and food and beverage markets. In addition, this joint venture enables Ecolab to more directly participate in the fast growing and substantial Israeli economy, and extends our broader presence in the Middle East markets, enhancing our premium service network for our worldwide customers."