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 LOGIN in 2022, is valued in this transaction at an EV/EBITDA multiple of LOGIN, a level around LOGIN higher than the 10.2x average currently observed in the Industry & Manufacturing sector.

Note that this data is based on contribution from our growing community, composed of M&A and Private Equity professionals, and has been verified by our team to ensure its accuracy.