Ovivo to sell electronics division to Ecolab for C$2.4 billion

MONTREAL - Water treatment equipment provider Ovivo Inc. announced Tuesday it has entered into a definitive agreement to sell its Electronics division to Ecolab (NYSE:ECL) for approximately C$2.4 billion. Ecolab, currently valued at $77.57 billion, is trading near its 52-week high of $274.17. According to InvestingPro analysis, the stock appears to be trading above its Fair Value, with 12 additional exclusive insights available to subscribers.

The transaction is expected to close in the first quarter of 2026, subject to regulatory clearance and other customary closing conditions, according to a press release statement from the company.

Ovivo, owned by German SKion Water GmbH, provides water and wastewater treatment equipment, technology and systems globally. Ecolab, based in Saint Paul, Minnesota, operates in more than 170 countries with 48,000 employees and generates annual revenue of $15.7 billion. The company has maintained dividend payments for 55 consecutive years, showcasing its financial stability. Get detailed insights into Ecolab’s financial health and comprehensive analysis through the InvestingPro Research Report, available along with 1,400+ other top stocks.

"This transaction is a testament to the world leading market position that our Electronics division has built over the last decades," said Marc Barbeau, President and Chief Executive Officer of Ovivo.

Following the sale, Ovivo plans to focus on accelerating growth in its remaining three operational divisions: Municipal/Industrial/PFAS, Energy, and Cembrane SiC membrane. Meanwhile, Ecolab maintains a strong financial position with a GOOD overall health score according to InvestingPro metrics, operating with moderate debt levels and a healthy current ratio of 1.44.

Reinhard Huebner, SKion Water CEO, stated that the company will continue its growth strategy, with plans to "accelerate organic growth in the Municipal, Energy and Cembrane business and to build out our industrial business in North America through acquisitions."

Ovivo currently operates in 18 countries with more than 1,500 employees specializing in water treatment. The company was advised by McCarthy Tétrault LLP as legal counsel for the transaction.

In other recent news, Ecolab Inc. announced a definitive agreement to acquire Ovivo Electronics for approximately $1.8 billion in cash, aiming to enhance its water solutions for semiconductor manufacturing. Ovivo Electronics is expected to generate sales of $500 million by 2025. Ecolab also declared a regular quarterly cash dividend of $0.65 per common share, to be paid on October 15, 2025, continuing its 88-year streak of dividend payments. Additionally, Ecolab appointed Julie P. Whalen, former CFO of Expedia Group, to its board of directors, where she will serve on the Audit and Finance Committees.

Mizuho has raised its price target for Ecolab to $314, citing a steady growth outlook, while the company’s second-quarter 2025 adjusted earnings per share of $1.89 matched the Bloomberg consensus estimate. Meanwhile, BMO Capital lowered its price target for Ecolab to $307, noting that the company’s pricing was not as strong as some investors had anticipated. Despite this, BMO Capital maintained an Outperform rating on the stock. These developments highlight Ecolab’s ongoing strategic initiatives and financial performance.

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