Evoqua, which operates in over 150 locations in nine countries and claimed to serve more than 38,000 customers, offers solutions to streamline and outsource mission-critical water treatment systems for customers in the life sciences, microelectronics, power, and food and beverage sectors
Water treatment company Evoqua to be acquired by Xylem. (Credit: 后园 卓 from Pixabay)
Xylem, an American water technology company, has agreed to acquire Evoqua, a provider of water treatment solutions and services, in an all-stock deal worth around $7.5bn.
Both companies are listed on the New York Stock Exchange (NYSE).
Based in Pennsylvania, Evoqua caters to industrial, municipal, and recreational customers with its water and wastewater treatment solutions.
It operates in over 150 locations in nine countries and is claimed to serve more than 38,000 customers and has 200,000 installations around the world.
Evoqua’s solutions, which include digitally enabled offerings, are said to streamline and outsource mission-critical water treatment systems for customers in the life sciences, power, microelectronics, and food and beverage sectors.
The company is also engaged in the remediation of Perfluoroalkyl and Polyfluoroalkyl Substances (PFAS) and other emerging contaminants.
Xylem said that Evoqua complements its portfolio of solutions with advanced water and wastewater treatment capabilities, a vast network of service professionals, and access to various industrial markets with revenue streams that are both resilient and recurring.
Xylem president and CEO Patrick Decker 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.”
“Together, our complementary businesses will be even more strongly positioned to help our customers and communities tackle their most challenging water needs.”
Xylem and Evoqua, when combined, earned more than $7bn in revenue in the 12-month period ending 30 September 2022.
As per the terms of the deal, Evoqua’s shareholders will exchange each of their shares in the company for 0.48 shares of Xylem. As per the share exchange ratio, Xylem’s shareholders will own nearly 75% of the combined company while the remaining 25% will be held by Evoqua’s shareholders.
Evoqua president and CEO Ron Keating said: “I am incredibly proud of what our team at Evoqua has achieved to date, providing mission-critical water treatment solutions to the market and for our customers. Along the way, we have earned a reputation for quality, safety and reliability around the world.
“Together with Xylem, we will drive innovation on a larger scale for our customers, positioning us to create even more value for our stakeholders.”
The deal, which is subject to approval by shareholders of both firms, regulatory approvals, and other customary conditions, is expected to close in mid-2023.