Water technology company Evoqua to be acquired in $7.5 billion deal

Pittsburgh-based water technology company Evoqua is being acquired by a Washington, D.C., company in a deal valued at about $7.5 billion.

Evoqua’s technology has been used in the life sciences, microelectronics, power and food and beverage sectors. It also has been used in the remediation of pollutants including “forever chemicals” called PFAS, which are industrial compounds that are used in products ranging from cookware to carpets which are associated with serious health conditions.

“Joining forces with Xylem is an exciting opportunity for Evoqua and for our team members,” said Ron Keating, Evoqua’s president and CEO. “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.”

The deal is expected to close by the middle of this year.

Upon closing, Xylem shareholders will own about 75% and Evoqua shareholders will own about 25% of the combined company on a fully diluted basis.

In 2022, Evoqua reported profits of $72.3 million on revenue of $1.74 billion.

The combined company will continue to be led by Patrick Decker, Xylem’s president and CEO. Two current members of the board of directors of Evoqua are expected to join Xylem’s board.

“Solving the world’s water challenges has never been more urgent,” said Decker in a statement. “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.”