ECL Boosts High-Tech Water Platform With Ovivo's Electronics Business

Core Insights - Ecolab (ECL) has completed the acquisition of Ovivo's Electronics business, enhancing its position in the ultrapure water technology sector for semiconductor manufacturing, driven by increasing demand from AI and data center investments [1][7][8] Company Developments - The acquisition is expected to generate approximately $500 million in sales by 2025 and will significantly expand Ecolab's high-tech water business, which is projected to exceed $800 million [7][9] - Ecolab acquired Ovivo's business for around $1.8 billion in cash, which will enable the company to offer comprehensive circular water management solutions for microelectronics, thereby reducing fresh water consumption and improving chip yield and quality [8][9] - The integration of Ovivo's ultrapure water expertise with Ecolab's existing capabilities is anticipated to enhance customer retention and recurring service revenues [2][4] Market Outlook - The ultrapure water market is projected to grow from an estimated $10.9 billion in 2025 to $31.1 billion by 2035, with a compound annual growth rate (CAGR) of 11.1%, driven by demand from industries such as semiconductor manufacturing, pharmaceuticals, and power generation [10] - Ecolab's acquisition positions it well within this expanding market, particularly in the semiconductor and AI sectors, which are critical for future growth [4][10] Financial Performance - Ecolab's current market capitalization stands at $73.51 billion, and the company reported an earnings surprise of 0.49% in the last quarter [6] - The acquisition is expected to be immediately accretive to sales growth and neutral to adjusted EPS in the first year post-close, with increasing accretion anticipated through 2027 and beyond [9]