Special Situation: Ecolab / Apergy (ChampionX) Share Exchange

Recommendation: Buy 99 shares of ECL and short 2,442 shares of APY

June 1, 2020

ECL: $212.58

Market Cap: $61.5BN

Enterprise Value: $67.6BN

APY: $9.07

Market Cap: $705MM

Enterprise Value: $1.2BN

Expected return: 5.38% / $1,135

Recommendation

I’m recommending buying 99 shares of ECL and tendering them today and simultaneously shorting 2,442 shares of APY.

This works out to a profit of 5.38% and $1,135 in ~2 weeks. See the math below.