Ecolab has agreed to purchase a paper chemicals business from Georgia-Pacific.
The companies announced the deal Friday but have not disclose the financial terms of the agreement. That segment of Georgia-Pacific’s operations, which includes chemicals that make paper more durable and softer, made about $43 million in revenue last year.
Ecolab, which specializes in sanitizing and cleaning chemicals, said that it plans to use the acquisition to expand its tissue and paper towel business.
"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," Christophe Beck, the executive vice president and president of Ecolab's Nalco Water division, said.
Ecolab is based in St. Paul and generated $13.5 billion in revenue lin 2016.
Atlanta-based Georgia-Pacific also announced that it is selling its pine chemicals business to Ingevity Corp. for $315 million.
