William Blair & Company Initiates Coverage of Nalco Holding
Company With Market Perform Rating
CHICAGO, Dec. 23 /PRNewswire/ -- William Blair & Company today announced that
it initiated research coverage of Nalco Holding Company (NYSE:NLC)($20.01), a
leading provider of water treatment and process- improvement chemicals and
services, with a Market Perform rating and company profile of Core Growth.
Analyst Bill Benton estimated that the company, which controls roughly 19% of
the global market for water treatment chemicals and services used by
institutional and industrial manufacturers, and 25% and 9% of the global market
for the energy and paper industries, respectively, would generate adjusted
EBITDA of $576.7 million in 2004 and $627.1 million in 2005.
"We believe the company's leading market share is a result of its strong
customer relationships, integrated sales and service offerings, superior
technology, and extensive global presence, allowing the company to service
customers effectively as they expand internationally and to provide one-stop
shopping for customers seeking one total water management solution provider,"
Benton said.
"Nalco's business strategy is focused on providing its critical products and
services as part of a service solution sale, resulting in a strong
recurring-revenue model," he added. "We estimate that more than 80% of the
company's revenue is recurring in nature. Nalco typically is 'designed' into
the customer's processes and applications, often with its service and technical
support teams working side by side with customers' employees, deepening its
relationship and providing an opportunity to offer additional products and
services. We believe this tight level of integration also provides a
significant barrier to customer exit, evident in the company's impressive
customer retention." William Blair & Company, L.L.C. has received compensation for investment
banking services from the company within the past 12 months, or expects to
receive or intends to seek compensation for investment banking services in the
next 3 months.
William Blair & Company, L.L.C. was a manager or co-manager of a public
offering of equity securities within the prior 12 months.
For important disclosures and information regarding the firm's rating system,
valuation methods and potential conflicts of interest, please visit:
http://www.williamblair.com/pages/eqresearch_home.asp?uid=768 Additional information is available upon request.
William Blair & Company, L.L.C. is a member of the National Association of
Securities Dealers, CRD number 1252. DATASOURCE: William Blair & Company, L.L.C.
CONTACT: Tony Zimmer of William Blair & Company, L.L.C., +1-312-364-8611, Web site: http://www.williamblair.com/
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