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05/2023

EVOQUA WATER TECHNOLOGIES acquired by XYLEM

UNITED STATES Industrial Equipment / Special Machinery EV 3b - 100b USD

Context

Xylem has successfully finalized the acquisition of 100% of the common stock of Evoqua Water Technologies, marking the creation of the world's most advanced and comprehensive water technology platform. This transformative merger brings together the group’s leadership in water transport and digital infrastructure with the target’s specialized treatment services and critical industrial market access. The strategic rationale for the transaction centers on addressing global systemic risks related to water quality, scarcity, and climate resilience at an unprecedented scale. By integrating the target’s extensive professional service network and expertise in emerging contaminant remediation, the organization bolsters its value proposition as a primary end-to-end partner for the entire water cycle. The partnership is designed to unlock substantial commercial synergies by cross-selling advanced monitoring technologies into the target’s robust North American industrial base, specifically within the healthcare and electronics sectors. This integration reinforces the group’s standing as a dominant global champion for sustainable water management, providing the financial depth and operational expertise required to solve the most pressing resource challenges for utilities and industrial customers worldwide.

EVOQUA WATER TECHNOLOGIES, which reported an EBITDA margin of in 2022, is valued in this transaction at an EV/EBITDA multiple of , representing a to the average currently observed in the Industry & Manufacturing sector (11.6x).

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Target

Evoqua is a leading technology organization specializing in the provision of mission-critical water and wastewater treatment solutions and services. The entity’s business model is built on a comprehensive lifecycle approach, combining advanced treatment hardware with a vertically integrated service network to ensure water quality and regulatory compliance. Its value proposition is centered on optimizing and outsourcing critical water systems for industrial, municipal, and commercial clients, particularly within high-growth sectors such as life sciences, microelectronics, and food and beverage. Strategically, the firm focuses on technical leadership in the remediation of emerging contaminants, including perfluoroalkyl substances (PFAS), while providing robust and recurring revenue streams through its extensive professional service infrastructure. By integrating digital offerings with traditional treatment processes, the organization facilitates the modernization and resilience of essential water infrastructure for thousands of global installations.

Ent. Value

Equity Value

Multiples

EV / Revenue

EV / EBITDA

EV / EBIT

Historical Financials (USD)

Year
Rev
EBITDA
EBIT
2022
2021

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REFERENCES

Valuation range: EV 3b - 100b USD

Revenue range: 1b - 3b USD

EBITDA range: 250M - 500M USD

Note: This page provides detailed data on a private equity M&A transaction. Detailed and exact financial metrics for the acquisition of EVOQUA WATER TECHNOLOGIES by XYLEM are reserved for mynth community members. Register for free to unlock full data.

Authors: This transaction was contributed by a verified mynth contributor and cross-checked against available transaction documents and official company communications.

Acquirer: xylem