Veolia has finalized an agreement with CDPQ to purchase its 30% stake in Veolia’s subsidiary, Water Technologies and Solutions (WTS). This acquisition will provide Veolia with complete ownership of the company, which is projected to enhance value creation, streamline the organization’s structure, and yield approximately €90 million in additional ongoing cost savings.
The acquisition is aligned with Veolia’s strategic framework, GreenUp, which focuses on reinforcing its foothold in water technologies, particularly in the United States—one of the primary targets for growth.
By obtaining CDPQ’s minority interest, Veolia will solidify its position as a global frontrunner in water technology, an area increasingly driven by the urgent demand for solutions to combat water scarcity, climate change, public health concerns, and the requirements of key sectors like semiconductors, pharmaceuticals, and data centers.
Having complete ownership of WTS will allow Veolia to merge operations more efficiently, optimize performance, and seize opportunities for innovation. The Group anticipates realizing an approximate additional €90 million in cost savings by 2027, describing these synergies as “well-identified” and with a “very low execution risk,” thanks to Veolia’s extensive knowledge of the business and its history of operational efficiencies. The acquisition is expected to contribute positively to earnings starting in 2026, enhancing the Group’s return on capital employed (ROCE).
Note: World Water Day: Preserving resources for a sustainable future
The purchase is valued at $1.75 billion (around €1.5 billion), reflecting approximately 11 times the expected EV/post-synergies 2025 EBITDA. Post-transaction, Veolia will retain financial flexibility, maintaining its Net Debt/EBITDA ratio below the target of 3x and allowing for ongoing execution of its GreenUp strategy.
Veolia has also reiterated its guidance for 2025 along with its GreenUp targets, introducing a new aim for the Water Technologies sector to achieve an EBITDA CAGR of at least +10% from 2023 to 2027.
Estelle Brachlianoff, CEO of Veolia, commented: “This acquisition is a significant step toward realizing the complete value potential of Water Technologies, which has been highlighted as a crucial area for growth in our GreenUp strategy, where we already hold a leading market position. Full ownership will facilitate accelerated growth, improved operational efficiency and synergies, as well as strengthen our alignment with strategic objectives. This initiative is especially vital given the fast-changing demands of the market, enabling us to respond swiftly and effectively to emerging opportunities and challenges.”
Albrecht von Alvensleben, managing director and Head of Private Equity Europe at CDPQ, stated: “We take pride in WTS’s progress since our investment in 2017, as it has developed into a global leader in water technologies. Our partnership has helped to fortify the company’s foundation and positioned it for continued growth and long-term value creation. We appreciate the close collaboration with the management teams at WTS and Veolia, and we wish them all the best in this new phase.”
The deal is anticipated to be finalized by the end of June 2025.