Ecolab has announced a major acquisition to strengthen its ultra-pure water technology portfolio, particularly for semiconductor manufacturing. The company plans to purchase Ovivo's electronics unit for about $1. 8 billion in cash. This strategic decision responds to the rising global demand for advanced microchips and artificial intelligence technologies, which have increased the need for efficient water use solutions in data centers. Cooling demands from high-powered GPUs in these applications significantly boost water consumption, making ultra-pure water systems essential in the production process. Ecolab emphasized the vast water usage in semiconductor fabs, noting that a single facility can consume as much water annually as 17 million people. This highlights the critical need to advance water purification and conservation technologies within the industry. Ovivo Electronics, the acquisition target, is projected to generate approximately $500 million in sales by 2025. Incorporating Ovivo’s expertise is expected to notably strengthen Ecolab’s position in the ultra-pure water market. Currently, Ecolab’s global high-tech business segment is valued at around $800 million.

With Ovivo Electronics added, the company anticipates strong double-digit growth, solidifying its presence in semiconductor and high-tech water treatment markets. The acquisition is forecasted to deliver attractive operating margins and will immediately boost Ecolab’s sales growth. Financially, while the deal will be neutral to adjusted earnings per share (EPS) in the short term due to roughly $45 million in non-cash amortization expenses, Ecolab expects earnings benefits to rise from 2027 onward. The company projects double-digit returns on the investment, underscoring the acquisition’s strategic and financial merit. The transaction is set to close in the first quarter of 2026, positioning Ecolab to capitalize on the growing demand for advanced microchips and AI technologies, thereby maintaining its leadership in semiconductor water technology innovation. Overall, Ecolab’s purchase of Ovivo’s electronics unit aligns strategically with industry trends focusing on increased water conservation and efficiency in high-tech manufacturing. As semiconductor fabrication becomes more water-intensive driven by GPU cooling needs, Ecolab’s enhanced ultra-pure water technologies are poised to support sustainable growth in this sector. This acquisition not only broadens Ecolab’s product range but also establishes a strong foundation for future expansion in a market marked by rapid technological progress and rising resource demands.