Veolia’s recent decision to fully acquire CDPQ’s 30% stake in Water Technologies and Solutions (WTS) for $1.75 billion (~€1.5 billion) significantly reinforces its strategic positioning and global leadership ambitions in the water technologies sector. As underscored by Veolia CEO Estelle Brachlianoff, this acquisition directly aligns with the company's GreenUp strategic roadmap, reinforcing water technologies as a critical growth driver and significantly expanding its presence, particularly in North America.
Established initially as a joint venture between Suez and CDPQ in 2017, WTS became part of Veolia following the Veolia-Suez merger in 2022. According to Veolia’s latest quarterly presentation, achieving complete ownership of WTS simplifies the corporate structure, enhances operational efficiency, and importantly, unlocks additional value through targeted innovation and development initiatives.
Financially, the acquisition presents an appealing valuation at roughly 11 times the projected EBITDA post-synergies, with anticipated annual run-rate cost synergies estimated at approximately €90 million by 2027. Veolia emphasizes that these synergies have low execution risk due to extensive operational familiarity and a successful track record.
Veolia Water Technologies demonstrated robust financial health with stable revenues of €1.156 billion in Q1 2025 and aims to progressively ramp up during the year, bolstered notably by significant new contracts exceeding $750 million in critical sectors such as energy and semiconductors:
A landmark $550 million contract in the US Midwest, involving the design, construction, and 16-year operation of a state-of-the-art facility providing ultrapure water and wastewater treatment for a major semiconductor plant. Utilizing Veolia’s advanced ultrafiltration and reverse osmosis membrane technologies, this facility will recycle approximately 8,000 m³ (2.1 million gallons) of water daily, directly supporting the strategic re-shoring of semiconductor manufacturing in the United States.
A strategic $34 million contract at San Francisco's Southeast wastewater treatment plant, using Veolia’s proprietary MemGas™ technology to convert biogas into biomethane. This project transforms the facility into a resource recovery center, generating 68 GWh/year of renewable energy, significantly aiding San Francisco’s greenhouse gas reduction targets.
Three strategic contracts totaling nearly $170 million with key energy sector partners in Brazil and the UAE. These projects implement cutting-edge membrane technology to remove sulfates from injection water used in offshore oil production, significantly enhancing operational efficiency and protecting critical infrastructure. Major partnerships include MODEC and Seatrium in Brazil, reinforcing Veolia’s global leadership in advanced offshore water treatment solutions.
With revenues of €4.973 billion and EBITDA of €612 million in 2024, Veolia Water Technologies already leads globally across membranes, reuse, and desalination, operating in 44 countries supported by 38 technological sites and 11 dedicated R&I laboratories. The strategic ambition outlined in Veolia’s GreenUp plan targets an EBITDA compound annual growth rate of at least 10% through 2027, alongside a revenue increase in Water Technologies of 50% by 2030, including approximately €1 billion in treatments related to PFAS and emerging pollutants.
Despite the immediate market reaction with a slight decline of 2.4% in Veolia’s shares following the announcement, the strategic rationale behind the acquisition remains robust, strongly supported by sectoral trends like water scarcity, climate adaptation, and industrial re-shoring.
This acquisition notably positions Veolia to capitalize on these megatrends and industry-specific opportunities, potentially influencing further strategic movements within the water technology sector.
At Smart Water Magazine, we will closely follow Veolia's progress as it advances its ambitious goals within this strategically vital segment of the global water market.
