Ecolab Expands High-Tech Water Business with $1.8 Billion Acquisition of Ovivo Electronics Unit

Ecolab has agreed to acquire Ovivo Electronics' water purification business for $1.8 billion in cash. The deal is expected to close in Q1 2026 and will position Ecolab as a major provider of circular water management solutions for semiconductor manufacturing. The acquisition will combine Ovivo's water purification expertise with Ecolab's digital platforms and existing water solutions to help chipmakers reduce freshwater usage and improve production efficiency. Ecolab expects the deal to be immediately accretive to sales growth and generate double-digit returns over time.

Ecolab Inc. has agreed to acquire Ovivo Electronics' water purification business for $1.8 billion in cash. The deal is expected to close in the first quarter of 2026 and will position Ecolab as a major provider of circular water management solutions for semiconductor manufacturing. The acquisition will combine Ovivo's water purification expertise with Ecolab's digital platforms and existing water solutions to help chipmakers reduce freshwater usage and improve production efficiency.

Ecolab expects the deal to be immediately accretive to sales growth and generate double-digit returns over time. The acquisition will more than double the size of Ecolab's global high-tech water growth engine, establishing Ecolab as a clear leader in these very large, high-growth markets. Combined, Ecolab expects its $800 million global high-tech business to grow strongly double-digits, with an attractive operating income margin.

Christophe Beck, chairman and CEO of Ecolab, stated, "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."

Ecolab will pay approximately $1.8 billion in cash at the closing of the transaction, subject to customary adjustments. 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 to 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.

References:
[1] https://www.ecolab.com/news/2025/08/ecolab-to-acquire-ovivo-s-electronics-ultra-pure-water-business