Ecolab Inc. has entered into a definitive agreement to acquire Ovivo’s Electronics business, a leading and fast-growing global provider of breakthrough ultra-pure water technologies for semiconductor manufacturing.
The acquisition will combine Ovivo’s ultra-pure water technologies with Ecolab’s leading water solutions, digital technologies, and worldwide service capabilities, further bolstering Ecolab’s high-tech growth engine on a global scale. With the expanded technology platform, Ecolab will be able to offer its microelectronics clients circular water management solutions that maximize chip production and quality while drastically lowering fresh water consumption during the manufacturing process.
Ovivo Electronics is expected to generate sales of $500 million in 2025 and currently employs more than 900 people worldwide. Ecolab will pay approximately $1.8 billion in cash at the closing of the transaction, subject to customary adjustments.
“Ovivo Electronics’ unique technologies deliver the world’s purest water, which is essential for manufacturing today’s most advanced microchips,” said Christophe Beck, chairman and CEO of Ecolab. “A single microelectronics fab can consume the drinking water needs of 17 million people per year. By integrating Ovivo’s ultra-pure water technologies with Ecolab’s global water, digital and service capabilities, we’re deepening our support for the fast-growing microelectronics and AI sectors. The combination will enhance our connection to high-tech customers and deliver a compelling circular water platform to maximize chip quality, performance and sustainability.
“This acquisition will more than double the size of our global high-tech water growth engine, establishing Ecolab as a clear leader in these very large, high-growth markets. Combined, we expect our $800 million global high-tech business to grow strong double-digits, with an attractive operating income margin. We look forward to welcoming Ovivo Electronics’ talented global team to Ecolab, as together we will win with our customers and deliver strong returns for our shareholders.”
It is anticipated that the acquisition will close in the first quarter of 2026, provided that the parties receive regulatory approval and meet other standard closing requirements. Double-digit returns and an immediate accretion to Ecolab’s sales growth are expected from the acquisition. Ecolab anticipates that, excluding roughly $45 million in non-cash amortization expenses, the acquisition will have no impact on adjusted earnings per share in the first year following the acquisition. After 2027, the contribution to adjusted earnings per share is anticipated to continue to grow. It is anticipated that Ecolab’s net debt to adjusted EBITDA will be roughly two times after the acquisition, in line with the company’s long-term leverage goal.
Source : Ecolab
