Ecolab Inc. has signed a definitive agreement to acquire Ovivo’s Electronics business, a fast-growing provider of ultra-pure water technologies for semiconductor manufacturing, in a deal valued at approximately $1.8 billion in cash.
The acquisition will integrate Ovivo’s advanced water purification systems with Ecolab’s existing water solutions, digital platforms, and global service network, aimed at delivering circular water management solutions for microelectronics customers. These solutions are designed to cut fresh water consumption while enhancing chip production efficiency and quality.
Ovivo Electronics’ systems produce what Ecolab describes as “the world’s purest water,” a critical input in manufacturing advanced microchips. The business, which employs more than 900 people worldwide, is expected to generate $500 million in sales in 2025. The transaction is expected to close in the first quarter of 2026, subject to regulatory approvals and customary conditions.
“A single microelectronics fab can consume the drinking water needs of 17 million people per year,” Ecolab Chairman and CEO Christophe Beck said in a statement. “By integrating Ovivo’s ultra-pure water technologies with Ecolab’s capabilities, we’re strengthening our position in the fast-growing microelectronics and AI sectors while creating a powerful circular water platform to maximize chip quality, performance, and sustainability.”
Post-acquisition, Ecolab’s high-tech water business is expected to expand from $300 million to $800 million in annual revenue, with strong double-digit growth projected. The company said the deal will more than double the size of its global high-tech water segment, delivering attractive operating margins and reinforcing its position as a leader in high-growth markets.
Ecolab anticipates the acquisition will be immediately accretive to sales growth and generate double-digit returns over time. The deal is expected to be neutral to adjusted earnings per share in the first year, excluding about $45 million in non-cash amortization costs, with earnings contribution expected to increase through 2027 and beyond.
Following the transaction, Ecolab projects its net debt-to-adjusted EBITDA ratio will be around 2x, in line with its long-term leverage target.
