Ecolab Inc (ECL) Quote - XNYS | Morningstar

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

Senior Equity Analyst Seth Goldstein

Seth Goldstein, CFA Senior Equity Analyst

Analyst Note

| Seth Goldstein, CFA | Oct 29, 2021

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

investor.info@ecolab.com

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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