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Ecolab Inc. (NYSE:ECL) announced on Tuesday that it has signed a definitive agreement to purchase the Electronics business of Ovivo for $1.8 billion in cash, aiming to integrate breakthrough ultra-pure water systems into its high-tech portfolio.
The acquisition, expected to close in the first quarter of 2026 pending regulatory approval, will position Ecolab as a major provider of circular water management solutions for semiconductor manufacturing.
By combining Ovivo's water purification expertise with Ecolab's digital platforms, service network and existing water solutions, the company plans to help chipmakers reduce freshwater usage while improving production efficiency and product quality.
Ovivo Electronics, projected to generate $500 million in revenue by 2025, employs over 900 people worldwide. Ecolab Chairman and CEO Christophe Beck stated that, “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.”
Also Read: These Analysts Revise Their Forecasts On Ecolab After Q2 Results
The acquisition is expected to be immediately accretive to sales growth and generate double-digit returns over time. For the first year, Ecolab anticipates the deal will be neutral to adjusted earnings per share, excluding roughly $45 million in non-cash amortization expenses. The company projects its net debt-to-adjusted EBITDA ratio will remain near 2x following the transaction, in line with its long-term targets.
Semiconductor fabrication plants require extraordinary amounts of ultra-pure water — enough to meet the annual drinking needs of millions, making water recycling critical to sustainability goals. Ovivo's proprietary systems are designed to meet the rigorous quality standards of advanced chip manufacturing, aligning with Ecolab's push into high-growth industrial segments.
The announcement comes weeks after Ecolab shares slipped when the company’s second-quarter results narrowly missed earnings expectations, despite higher margins and steady sales growth in core segments. The company exited the quarter with cash and equivalents worth $1.92 billion. ECL reaffirmed its full-year outlook at the time, and investors may now view the Ovivo acquisition as a move to accelerate growth in high-margin, high-demand markets.
Price Action: ECL shares closed at $273.50 on Monday.
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Posted In: ECL
