(Left to Right) Patrick Decker, President and CEO of Xylem and Ron Keating, Evoqua’s President and CEO
- $7 billion in combined revenues with new growth opportunities expected
- Annual run rate cost synergies of $140 million expected to be achieved by the company within 3 years
WD News: Xylem Inc. and Evoqua have announced that they have entered into a definitive agreement under which Xylem will acquire Evoqua in an all-stock transaction that reflects an implied enterprise value of approximately $7.5 billion.
Xylem and Evoqua generated over $7 billion in combined revenue in the 12-month period ending September 30, 2022, with $1.2 billion in adjusted EBITDA. The combination is expected to deliver run-rate cost synergies of $140 million within 3 years, driven by scale efficiencies in procurement, network optimisation and corporate costs.
“Our acquisition of Evoqua creates a transformative global platform to address water scarcity, affordability and resilience at even greater scale,” said Patrick Decker, President and CEO of Xylem. “The combined company delivers a portfolio of advanced technologies, integrated services and application expertise across the water cycle.”
“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,” said Ron Keating, President and CEO of Evoqua.
The transaction, which is anticipated to close in mid-2023, is subject to approval by shareholders of Xylem and Evoqua, the receipt of required regulatory approvals and other customary closing conditions. Following the closing, the combined company will continue to be led by Patrick Decker, Xylem’s President and CEO.
Source & image courtesy: Xylem