Ecolab to acquire electronics business from Ovivo for $1.8B

Ecolab (ECL) has entered into a definitive agreement to acquire Ovivo’s electronics business. Ovivo Electronics is expected to generate sales of $500M in 2025 and currently employs more than 900 people worldwide. Ecolab will pay approximately $1.8B in cash at the closing of the transaction, subject to customary adjustments. The acquisition is expected to close in the first quarter of 2026, subject to the parties obtaining regulatory clearance and satisfaction of other customary closing conditions. 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 will be neutral to adjusted earnings per share, excluding approximately $45M 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.