Yahoo Finance Xylem (XYL) Closes Evoqua Deal, Boosts Water Service Portfolio
Xylem Inc. XYL has completed its previously announced acquisition of Evoqua Water Technologies Corp., a provider of mission-critical water treatment solutions and services, for approximately $7.5 billion. The combined entity will help address the water scarcity issues and other challenges of customers and communities at large.
The combination of Xylem and Evoqua creates the world’s largest pure-play water technology company.
Evoqua’s advanced water and wastewater treatment capabilities and exposure to key industrial markets complement Xylem’s portfolio of solutions across the water cycle. The acquisition bolsters XYL’s position in water technologies, solutions and services, and strengthens its foothold in lucrative end markets.
Xylem Inc. Price
Xylem Inc. price | Xylem Inc. Quote
The transaction is expected to deliver run-rate cost synergies of $140 million within three years of closing. It is also expected to strengthen Xylem’s balance sheet.
Xylem’s president and CEO, Patrick Decker, will lead the combined company. Some former directors of Evoqua will serve in the entity’s board.
Under the terms of the agreement, Xylem shareholders own approximately 75% of the combined company on a fully diluted basis, while Evoqua shareholders own around 25%.
Zacks Rank & Key Picks
Xylem carries a Zacks Rank #3 (Hold).
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Flowserve has an estimated earnings growth rate of 64.5% for the current year. The stock has gained 9% in a year.
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Graco has an estimated earnings growth rate of 16.3% for the current year. The stock has appreciated 21.4% in a year.
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