Ecolab Inc. has entered a definitive agreement to acquire Ovivo’s Electronics business, a global leader in ultra-pure water technologies for the semiconductor industry. The acquisition, valued at approximately $1.8 billion in cash (subject to customary adjustments), will enhance Ecolab’s high-tech water solutions portfolio by combining Ovivo’s breakthrough purification systems with Ecolab’s advanced water technologies, digital tools, and worldwide service network.
The integration will enable Ecolab to deliver comprehensive circular water management solutions, helping microelectronics manufacturers reduce fresh water consumption while maximizing chip production efficiency and quality.
Ovivo Electronics, expected to generate $500 million in sales in 2025, employs more than 900 people globally. 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.”
The acquisition is expected to close in the first quarter of 2026, subject to the parties obtaining regulatory clearance and satisfaction of other customary closing conditions. The acquisition is expected to generate double-digit returns and is anticipated to be immediately accretive to Ecolab’s sales growth. During the first year post-acquisition, Ecolab expects the acquisition will be neutral to adjusted earnings per share, excluding approximately $45 million of non-cash amortization costs. Contribution to adjusted earnings per share is expected to build through 2027 and beyond. Following the acquisition, Ecolab’s net debt to adjusted EBITDA is expected to be approximately 2x, consistent with the company’s long-term leverage target.
