Ecolab to acquire Ovivo unit for $1.8 billion to enhance water tech amid AI-driven cooling demand

Aug 12 (Reuters) - Ecolab ECL.N said on Tuesday it would buy Ovivo's electronics unit for about $1.8 billion in cash to expand its ultra-pure water technology for semiconductor manufacturing, as demand for advanced microchips and AI grows.

Water consumption in data centers has increased significantly due to the higher cooling requirements of power-intensive graphics processing units for AI and high-performance computing compared to conventional servers.

A single semiconductor fab can consume as much water annually as 17 million people, Ecolab said.

Ovivo Electronics is expected to generate $500 million in sales in 2025.

"Combined, we expect our $800 million global high-tech business to grow strong double-digits, with an attractive operating income margin," said the CEO of Ecolab Christophe Beck.

The acquisition is expected to generate double-digit returns and is anticipated to be immediately accretive to Ecolab's sales growth, Ecolab said in a statement.

The acquisition is expected to be neutral to adjusted earnings per share, excluding about $45 million of non-cash amortization costs, and is anticipated to build through 2027 and beyond, it added.

The deal is expected to close in the first quarter of 2026.