Ecolab, a leader in water, hygiene, and infection prevention solutions, has entered into a definitive agreement to acquire Ovivo’s Electronics business. This strategic acquisition will enhance Ecolab’s high-tech growth initiatives by integrating Ovivo’s advanced technologies into Ecolab’s extensive portfolio of water solutions, digital platforms, and global service network.
By uniting these capabilities, Ecolab aims to provide a comprehensive platform for circular water management solutions, specifically designed for microelectronics customers. The focus will be on significantly reducing fresh water usage in manufacturing processes while maximizing chip production and quality—a critical requirement in this water-intensive industry.
The acquisition of Ovivo’s Electronics business is a major investment for Ecolab, projected to generate $500 million in sales by 2025 and employing over 900 people worldwide. Ecolab will pay approximately $1.8 billion in cash at closing, subject to customary adjustments. The transaction is anticipated to close in the first quarter of 2026, pending regulatory approval and other closing conditions.
Financially, the acquisition is expected to deliver double-digit returns and immediately boost Ecolab’s sales growth. While it is forecasted to have a neutral impact on adjusted earnings per share in the first year (excluding about $45 million in non-cash amortization costs), contributions to adjusted earnings per share are expected to increase from 2027 onward. Following the acquisition, Ecolab’s net debt-to-adjusted EBITDA ratio is projected to be approximately 2x, which aligns with the company’s long-term leverage targets.
KEY QUOTES:
“Ovivo Electronics’ unique technologies deliver the world’s purest water, which is essential for manufacturing today’s most advanced microchips. 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.”
Christophe Beck, chairman and CEO of Ecolab
