Xylem to buy water treatment solutions provider Evoqua Water Technologies
Xylem, an American water technology company, will acquire Evoqua Water Technologies, a mission-critical water treatment solutions and services provider, in an all-stock transaction valued at around $7.5 billion.
The transaction complements Xylem’s portfolio of solutions with advanced water and wastewater treatment capabilities, an extensive network of service professionals, and access to attractive industrial markets.
The proposed acquisition is anticipated to help the combined company create a platform to develop and deliver innovative solutions to solve world’s water challenges.
Evoqua Water Technologies’ solutions optimize and outsource mission-critical water treatment systems for customers in high-growth sectors such as microelectronics, life sciences, power, and food and beverage.
The Pittsburgh, Pennsylvania-headquartered company operates in over 150 locations across nine countries with over 38,000 customers and 200,000 installations globally.
Patrick Decker — Xylem President and CEO said: “Our acquisition of Evoqua creates a transformative global platform to address water scarcity, affordability and resilience at even greater scale.
“The combined company delivers an unparalleled portfolio of advanced technologies, integrated services and application expertise across the water cycle.”
For the 12-month period ending 30 September 2022, Xylem and Evoqua generated more than $7 billion in combined revenue with $1.2 billion adjusted EBITDA.
The transaction anticipates to deliver annual run-rate cost synergies of $140 million within three years.
Post-closing, Xylem shareholders will hold around 75% stake in the combined company while Evoqua Water Technologies shareholders will have approximately 25%.
Ron Keating — Evoqua Water Technologies President and CEO said: “This combination provides a platform to leverage our combined strengths and increase our impact to better address the most pressing and increasingly complex global water challenges.
“Together with Xylem, we will drive innovation on a larger scale for our customers, positioning us to create even more value for our stakeholders.”
Likely to complete in mid-2023, the deal is subject to Xylem and Evoqua shareholders and regulatory approvals as well as other customary closing conditions.