Ecolab to acquire Purolite in a cash transaction valued at ~$3.7B

  • Ecolab (NYSE:ECL) entered into an agreement to acquire Purolite, global provider of high-end ion exchange resins for the separation and purification of solutions.
  • The acquisition is highly complementary to its current offering and critical to safe, high quality drug production and biopharma product purification in the life sciences industries.
  • The acquisition is structured as a cash transaction valued at ~$3.7B utilizing ~$800M of cash on the company's balance sheet and low-cost debt for the balance.
  • Purolite operates in 30+ countries with expected 2021 sales of ~$0.4B.
  • 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 Q4 and is expected to realize tax benefits with an estimated net present value of ~$300M.
  • Returns are expected to be significantly above Ecolab 's weighted average cost of capital; acquisition is expected to be neutral in 2022 and nearly $0.10 accretive in 2023 to adj. EPS; transaction amortization expected to be ~$0.26/share.
  • "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," president & CEO Christophe Beck commented.

    Over the current book year the total revenue from the company in Saint Paul will be 12.74 billion USD (consensus estimates). This is slightly more than 2021's revenue of 11.79 billion USD.

    Historical revenues and results Ecolab plus estimates 2021


    The analysts expect for 2021 a net profit of 1.39 billion USD. Most of the analysts anticipate on a profit per share of 4.83 USD. Based on this the price/earnings-ratio is 48.33.

    Analysts expect a dividend of 1.99 USD per share. Ecolab 's dividend yield thus equals 0.85 percent. The average dividend yield of the diversified companies equals an attractive1.97 percent.

    Based on the current number of outstanding shares Ecolab 's market capitalization is 67.32 billion USD. 11

    On Tuesday the stock closed at 233.43 USD.

    Historical stock prices Ecolab period 2007-2021

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