BY Richard Summerfield
Hygiene company Ecolab has agreed to acquire Purolite in a $3.7bn deal which is expected to close later this year.
Under the terms of the agreement, Ecolab will pay approximately $3.7bn in cash, utilising approximately $800m of cash on the company’s balance sheet and low-cost debt for the balance.
Purolite reports sales of around $400m, operates in 30 countries and employs roughly 1000 people worldwide. Upon completion of the deal, the company will operate as a separate business unit and its results will be reported within Ecolab’s life sciences division.
Purolite’s products includes a type of resin beads that are used to separate elements and compounds in industries ranging from sugar refining to manufacturing of mRNA vaccines. The deal is expected to help Ecolab grow in the water purification, food and beverage processing, and metal extraction businesses. The transaction is expected to add to the company’s earnings in 2023.
“With 2021 sales of $0.4 billion and mid-teens growth, Purolite is an acquisition that brings us a fast growing leader in biopharma and industrial purification solutions with very strong margins,” said Christophe Beck, president and chief executive of Ecolab. “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.
“By combining Ecolab’s state-of-the-art capabilities in clean and safe processing with Purolite’s revolutionary resin technology, we will provide a comprehensive and game-changing offering that will make the customer’s end-product better, safer, healthier and more effective,” he continued. “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.”
“Over the last 40 years, with the support and contribution of our loyal, highly skilled workforce, we have built our company into a dynamic force within the industries and for the clients we serve,” said Steve Brodie, chief executive of Purolite. “We are truly grateful to our employees and management team for supporting our vision and entrepreneurial spirit. My family and I are very confident that Ecolab can carry on these traditions. We are confident that Purolite will be in good hands and that our goals for high growth, innovation and quality will continue under Ecolab’s stewardship.”