Xylem acquires Evoqua in $7.5B water deal

Pittsburgh-based Evoqua will be acquired in an all-stock transaction valued at $7.5 billion in a deal announced Monday.
Xylem Evoqua

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Xylem, a water technology supplier based in Washington, DC, has agreed to buy Evoqua for $7.5 billion in cash and debt.

Water is difficult to monetize, but as climate change worsens water scarcity, investors are taking notice. In fiscal 2022, Xylem generated approximately $5.3 billion in revenue, while Evoqua generated approximately $1.7 billion.

“Water scarcity, efficiency and availability — that goes across the entire spectrum of what we do,” Xylem president and CEO Patrick Decker tells Axios.

In terms of synergies, the acquisition will significantly increase Xylem’s access to industrial customers as well as the company’s footprint in the United States.

  • Industry generated about 82% of Evoqua’s end-market revenue, compared to about 35% for Xylem.
  • In terms of footprint, most of Evoqua’s business is focused in the U.S., versus less than half for Xylem.
  • Procurement and streamlining duplicative corporate functions were areas of focus, too.

Whether this deal opens the faucet for more transaction activity in the water sector.

The deal is expected to close in the middle of the year.

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