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ECOLAB has announced plans to buy oilfield speciality chemicals maker Champion Technologies for US$2.2bn, in a bid to take advantage of rising production in North America.

The US-based Ecolab has traditionally manufactured cleaning chemicals such as detergents and disinfectants, but has recently expanded into oil and gas services. This was kicked off last year by its US$8.1bn purchase of Nalco, which produces water-treatment chemicals widely used by the energy industry, and will be further strengthened by its acquisition of Champion.

Ecolab chairman and CEO Douglas Baker claims that Champion – also based in the US – was “a very attractive business that opportunistically became available.”

“Champion’s technology and product strengths in the US and Canada are very complementary to our innovative technology and services in the offshore and international energy markets.”

The deal will see Ecolab pay for Champion with around US$1.65bn in cash, with the remaining US$550m coming in the form of shares. Ecolab estimates that by combining their activities, the companies will save around US$150m over the next three years.

Champion chairman Steve Lindley explains that “by merging our businesses, we will have the expanded technology, service capability, financial resources and infrastructure we need to grow.”

Subject to approval by US regulators, the deal is expected to complete by the end of the year.