This episode explores Ecolab, a $66 billion market cap company specializing in water and hygiene solutions, tracing its history from its founding in the 1920s to its current market position. Against the backdrop of its origin story—solving a hotel's cleaning problem with innovative chemicals—the discussion details Ecolab's diverse business segments, including industrial water treatment (50% of revenue), institutional cleaning (35%), and pest elimination (7%). More significantly, the interview delves into Ecolab's 2011 acquisition of Nalco, a move driven by the foresight of water's growing importance. For instance, the conversation highlights Ecolab's shift from liquid to solid chemical sales, improving efficiency and sustainability for clients like McDonald's, one of its two exclusive US vendors. The discussion also touches upon Ecolab's competitive landscape, its value-based pricing model, and its impressive free cash flow conversion rate (90-100%). Finally, the episode concludes with insights into Ecolab's M&A strategy, its focus on long-term relationships, and the enduring importance of its water-related solutions in a world facing increasing water scarcity.