Circularity & Semiconductors: Inside Ecolab's Ovivo Takeover
Ecolab is a global leader in water purification, using cutting-edge techniques like reverse osmosis and deionisation to remove contaminants and debris from water sources.
Notably, Ecolab is also a company with a laser focus on sustainability.
The company has aims to deliver ultra-pure water while reducing its environmental impact wherever possible.
The US-based firm is now finalising a deal that will see it purchase the electronics division of Ovivo, a water treatment company that works closely with several major manufacturers of semiconductors.
This acquisition is set to cost Ecolab US$1.8bn.
With this deal, Ecolab is looking to expand its international operations by merging Ovivo's ultra-pure water solutions with its own technologies and worldwide service networks.
Crucially, by combining the technological systems of both firms, Ecolab will get a huge boost when it comes to circularity and the reuse of resources.
According to Ecolab, the aim is to "significantly reduce fresh water use in their manufacturing process while maximising chip production along with quality".
Why Ecolab wants to buy out Ovivo
To Christophe Beck, Chairman and CEO of Ecolab, entering the semiconductor market is a no-brainer.
"Ovivo Electronics' unique technologies deliver the world's purest water, which is essential for manufacturing today's most advanced microchips," he says.
"A single microelectronics fab can consume the drinking water needs of 17 million people per year.
"By integrating Ovivo's ultra-pure water technologies with Ecolab's global water, digital and service capabilities, we're deepening our support for the fast-growing microelectronics and AI sectors.
"The combination will enhance our connection to high-tech customers and deliver a compelling circular water platform to maximise chip quality, performance and sustainability."
The acquisition is expected to be completed by the first quarter of 2026, pending regulatory approval and the fulfilment of some standard closing requirements.
"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," Christophe explains.
"Combined, we expect our US$800m global high-tech business to grow strong double-digits, with an attractive operating income margin.
"We look forward to welcoming Ovivo Electronics' talented global team to Ecolab, as together we will win with our customers and deliver strong returns for our shareholders."
The importance of sustainability at Ecolab
Ecolab has established ambitious environmental targets across various areas.
Regarding water stewardship, the company seeks to decrease enterprise-wide water impact by 40% per production unit by 2030 from a 2018 baseline and restore more than 50% of its absolute water withdrawal volume at high-risk locations.
The organisation has obtained Alliance for Water Stewardship certification at multiple facilities and employs digital solutions such as the Smart Water Navigator to improve water management.
By 2024, Ecolab had decreased overall water impact intensity by 29% and replenished 64% of withdrawal at high-risk locations.
Concerning climate action, its science-based objectives pledge to reduce absolute Scope 1 and 2 greenhouse gas emissions by 50% by 2030, with a net zero target for 2050.
By 2024, emissions had been reduced by 33% and 71% of electricity was obtained from renewables.
In product development, Ecolab incorporates sustainable approaches to minimise lifecycle impact while optimising customer productivity, safety and efficiency.
For packaging, the team is targeting all non-regulated product packaging to be reusable or recyclable-by-design by 2030, already achieving 91% by weight and in 2024 prevented 15.9 million pounds of virgin plastic resin through design and material selections.
In formulation development, it includes bio-based raw materials such as enzymes to substitute conventional chemicals, collaborating with suppliers like Novonesis on circular manufacturing.
Internationally, Ecolab partners with organisations including the United Nations Global Compact, Alliance for Water Stewardship, Water Resilience Coalition and The Nature Conservancy to promote water security, stewardship, education and climate action.
This deal with Ovivo will only see its influence grow, both in the realms of water treatment and sustainability.
