Ecolab adds service solutions to drive end-product safety and quality through the acquisition of Purolite, which it says doubles its existing high growth.
Ecolab, a firm that specializes in water, hygiene and infection prevention solutions and services has entered into an agreement to buy Purolite, a separation tech company in a cash transaction valued at $3.7 billion.
The transaction is expected to close in Q4 2021 and according to Ecolab, Purolite will operate as a separate global business unit but its overall results will be included within Ecolabâ€™s Life Sciences division.
â€śPurolite is an acquisition that brings us 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,â€ť Christophe Beck CEO at Ecolab said.
â€śBy combining Ecolabâ€™s state-of-the-art capabilities in clean and safe processing with Puroliteâ€™s revolutionary resin technology, we will provide a comprehensive and game-changing offering that will make the customerâ€™s end-product better, safer, healthier and more effective. 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.â€ť
The acquisition will also expand Ecolabâ€™s global presence as Purolite, headquartered in King of Prussia, Pennsylvania operates in 30 countries and has manufacturing plants located in Asia, Europe, and Latin America.
Ecolab will pay $3.7 billion in cash and use around $800 million of cash on the firmâ€™s balance sheet and low-cost debt for the balance.