Ecolab Pays $3.7 Billion for Purolite
Ecolab, a US provider of hygiene and infection prevention products and services, has agreed to buy Purolite, a compatriot manufacturer of ion-exchange resins, for roughly $3.7 billion. Once the deal is completed, expected in the final quarter of this year, Purolite will operate as a separate global business unit, reporting into Ecolab’s Life Sciences division.
The transaction is reported to be Ecolab’s biggest since spinning off its upstream energy business to Apergy for about $4 billion in December 2019. The company noted, however, that it is expecting to realize only modest cost synergies from the buy, as it is a “growth acquisition.”
Based in King of Prussia, Pennsylvania, Purolite’s resins are used for separation and purification in the biopharma, microelectronics, nuclear power, and food and beverage markets. The company employs about 1,000 people and operates in more than 30 countries. It is expected to generate sales of approximately $400 million in 2021.
Ecolab’s president and CEO Christophe Beck said the acquisition brings a fast-growing leader in biopharma and industrial purification solutions with very strong margins. “With this transaction, we will significantly increase our opportunities in our high-growth, high-margin life sciences business, such as the purification of mRNA vaccines and monoclonal antibodies for cancer-treatment drugs,” he said.
“At the same time, it will further expand our capabilities in industries that are complementary to our already existing leading positions, such as the polishing of advanced microelectronics, ultra-purification of water in nuclear power, food and beverage taste and product quality enhancement, high-end precious metals extraction, like lithium for EV batteries, as well as in the production of hydrogen fuel cells.”
Author: Elaine Burridge, Freelance Journalist
