Apergy Corp. agreed to combine with Ecolab Inc.’s upstream business in a transaction valued at $4.4 billion, including the assumption of debt, the companies said in a joint release on Dec. 19.

The merger combines Apergy with Ecolab’s Nalco Champion business, which was renamed ChampionX and consists of drilling, completion, and energy production, chemistry sciences and solutions operations. The combined business is expected to generate pro forma revenue of about $3.5 billion with annual run-rate cost synergies of $75 million.

As part of the transaction, Apergy will issue 127 million shares to existing Ecolab shareholders. The deal is worth $3.89 billion based on Apergy’s closing price on Dec. 18. Apergy also will assume $492 million in debt from the acquisition, which brings the deal’s total value to about $4.4 billion.

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