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Ecolab Inc ECL

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Raising Ecolab FVE to $215 on Purolite Acquisition; Shares Fairly Valued

Seth Goldstein, CFA Senior Equity Analyst

Analyst Note

| Seth Goldstein, CFA |

On Oct. 28 after market close, Ecolab announced plans to acquire Purolite, a market leader in high-value separation and purification solutions with sales to the life sciences and industrial end markets, for $3.7 billion in cash, which values Purolite at a 23 times enterprise value/EBITDA multiple. At first glance, the acquisition price seems high.

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Company Profile

Business Description

Ecolab produces and markets cleaning and sanitation products for the hospitality, healthcare, and industrial markets. The firm is the global market share leader in this category with a wide array of products and services, including dish and laundry washing systems, pest control, and infection control products. The company has a strong hold on the U.S. market and is looking to increase its profitability abroad. Additionally, Ecolab serves customers in water, manufacturing, and life sciences end markets, selling customized solutions.

Contact
1 Ecolab Place
Saint Paul, MN, 55102
T +1 800 232-6522
Sector Basic Materials
Industry Specialty Chemicals
Most Recent Earnings Sep 30, 2021
Fiscal Year End Dec 31, 2021
Stock Type Cyclical
Employees 44,000

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