Ecolab to acquire Purolite

Ecolab has agreed to acquire Purolite, a supplier of ion exchange resins for the separation and purification of solutions based in Pennsylvania, for $3.7 billion in cash. This should close within Q4, subject to regulatory clearance and other closing conditions. It is expected to be revenue-neutral in 2022 and slightly accretive in 2023.

Purolite operates in more than 30 countries and employs about 1,000 people, with expected 2021 sales of around $400 million. It will operate as a separate global business unit and it results will be reported within the Life Sciences division.

Ecolab said that Purolite will complement its own current offer in the life sciences industries, where demand for purification services is growing at double-digit rates. Purolite is also active in the microelectronics, nuclear power, food and beverage, and other industries.

“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 (mAbs) for cancer-treatment drugs,” said Ecolab CEO Christophe Beck.

Purolite was said to have a “highly recurring business model”, as it is usually part of FDA drug filings in life sciences. In addition, it has a particularly promising innovation in the form of jetted agarose resin beads, which are claimed to offer exceptional performance in mRNA vaccine production and mAb purification.