Dive Brief:
- Chemicals company Ecolab has agreed to acquire Ovivo’s electronics business for $1.8 billion in cash to further expand its water treatment capabilities for semiconductor manufacturing.
- The deal, which is expected to close in the first quarter of 2026 pending regulatory approval, would allow Ecolab to provide water management solutions that “significantly reduce fresh water use” in customers’ manufacturing processes, according to a news release.
- Ovivo’s electronics business is on track to generate $500 million in sales this year. It employs more than 900 people worldwide, according to the release.
Dive Insight:
The average chip manufacturing facility relies on up to 10 million gallons of ultra-pure water for production each day, according to the World Economic Forum, mostly for cleansing wafers. To reduce water usage, semiconductor companies are looking to circular systems as a viable solution.
Ultra-pure water, used for rinsing residue from chips during fabrication, is processed to the point in which all minerals, bacteria and impurities are removed. It is thousands of times cleaner than drinking water and used to increase chip yields, according to the World Economic Forum. Chipmakers also use the water for cooling systems and generating electricity.
“A single microelectronics fab can consume the drinking water needs of 17 million people per year,” Ecolab CEO Christophe Beck said in a statement.
Ovivo’s ultra-pure technologies treat wastewater so manufacturers can reclaim large volumes of purified water and reduce their overall environmental footprint. The Montreal-based company offers a range of purification equipment such as filters, pumps, reactors and glass beads, as well as digital and analytics services, according to its website. With the sale, Ovivo said it’s shifting its focus to treat public water and industrial sources as PFAS concerns grow.
“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,” Beck said.
Combined with Ovivo’s electronics unit, Beck said Ecolab expects its $800 million global high-tech business to “grow strong double-digits, with an attractive operating income margin.”
St. Paul, Minnesota-based Ecolab has 32 domestic manufacturing plants across 14 states, as well as dozens of facilities internationally, according to its 2024 annual report. It is a provider of water, hygiene and infection prevention solutions across food, healthcare, life sciences and industrial markets, but recently has been building out a global high-tech business focused on serving the semiconductor space.
Ecolab generated $15.7 billion in sales last year and employs more than 49,000 people worldwide.
