Life Sciences Ecolab Acquires Global Ion Exchange Resins Provider Purolite for 3.7 Billion Dollars
Ecolab has plans to takeover Purolite, a global manufacturer of high-end ion exchange resins for the separation and purification of solutions in biopharma and industrial sectors. The acquisition will strengthen the company’s life sciences business in order to develop better and more effective products for its customers as well as expand its capabilities in microelectronics, nuclear power and food and beverage industries.
St. Paul/USA – Ecolab has entered into an agreement to acquire Purolite, a leading and fast-growing global provider of high-end ion exchange resins for the separation and purification of solutions, that is highly complementary to its current offering and critical to safe, high quality drug production and biopharma product purification in the life sciences industries.
It also provides purification and separation solutions for critical industrial markets like microelectronics, nuclear power and food and beverage. The acquisition is structured as a cash transaction valued at approximately 3.7 billion dollars. Based in King of Prussia, PA, Purolite operates in more than 30 countries and employs approximately 1,000 people worldwide, with expected 2021 sales of approximately 0.4 billion dollars.
Purolite will operate as a separate global business unit and its overall results will be reported within Ecolab’s Life Sciences division. The transaction is expected to close in the fourth quarter of 2021, subject to regulatory clearance and other customary closing conditions. No other details were announced.
Commenting on the transaction, Christophe Beck, Ecolab’s president and chief executive officer said, “With 2021 sales of 0.4 billion dollars 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. 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.
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. 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.
“It provides another strong and adjacent global growth platform within Ecolab with double-digit growth prospects in both our life sciences and industrial markets. It opens up new opportunities for innovation, circle the customer sales opportunities and future M&A. This new growth platform will provide high end purification solutions that further improve the quality and safety of life-saving drugs, high quality foods and ultra-pure water for high tech industries. It also provides new solutions to further improve our water re-use and re-cycling offerings as well as innovative solutions to improve our environmental programs for customers, such as PFAS remediation.
“We are also truly excited by the unique talent, scientific expertise and new capabilities Purolite brings us to further improve our leadership positions and deliver continued strong shareholder returns.” Ecolab will pay approximately 3.7 billion dollars in cash, utilizing approximately 800 million dollars of cash on the company’s balance sheet and low-cost debt for the balance.