Major acquisitions in the water sector in 2024

One of the most prominent moves in the first half of the year was DuPont’s decision to spin off its $1.5 billion Water business as a standalone publicly traded company. This strategic decision reflects a broader trend of conglomerates streamlining operations to focus on core strengths, for example Danaher’s spinout of Veralto in 2023. The spin-off is expected to provide DuPont’s Water business with flexibility to pursue growth and targeted M&A opportunities. Another major restructuring effort came from Georg Fischer (GF), which announced a pivot to focus exclusively on Water and Flow Solutions. Following its acquisition of Uponor in November 2023, now rebranded as GF Building Flow Solutions, GF solidified its position as a global leader in sustainable water and flow solutions. This acquisition enabled GF to address mission-critical challenges in industrial flow processes, urban water management, and energy efficiency in buildings. To support this new strategic focus, GF divested its non-core businesses, including the sale of GF Machining Solutions to United Grinding Group for CHF 630-650 million. In a recent Bluefield Research podcast, ‘The Future of Water,’ Keith Hays, VP & Managing Director at Bluefield Research commented about Georg Fischer’s reorganization: “It is an interesting continuation of a trend we have seen in companies like Pentair and Veralto that have carved out and created water centric units. Georg Fisher has disposed of some of its lower growth units and has tapped into what is attractive about water. Water is super stable and touches on all parts of the economy and this sector was stabler than Georg Fisher’s machinery division.” 

With 2023 sales of approximately $50 million, Barclay complements Ecolab’s water solutions portfolio

Adding to the year’s notable acquisitions, Ecolab announced its purchase of Barclay Water Management, a provider of water safety and digital monitoring solutions for industrial and institutional customers in the northeastern United States. Barclay’s proprietary iChlor® Monochloramine System, designed for treating Legionella bacteria in drinking water systems, offers enhanced water safety, asset longevity, and real-time water chemistry monitoring. With 2023 sales of approximately $50 million, Barclay complements Ecolab’s water solutions portfolio. According to Keith Hays, “Ecolab’s acquisition is tactical by adding features and capabilities to their core business.”

In June 2024, Grundfos, a leader in advanced pump solutions and water technologies, made headlines with its acquisition of Culligan’s Commercial & Industrial division in Europe. This strategic move strengthens Grundfos’ position in the European water treatment market and complements its previous acquisitions, including EUROWATER and MECO. With a turnover of over €100 million in 2023, Culligan’s business provides Grundfos with a broader portfolio and deeper regional presence, aligning with its commitment to tackling global water challenges.

Private equity continued to play a pivotal role in shaping the water sector in 2024, particularly in the realm of digital solutions. Swedish investment firm EQT Group acquired AMCS Group, an Irish software company specializing in waste and water management applications, for $1.4 billion. The deal highlights the growing strategic value of digital water technologies, which enables more efficient operations in both municipal and industrial contexts. EQT’s investment underscores a broader trend of private equity focusing on innovative, data-driven companies within the water space.

In a similarly impactful move, XPV Water Partners sold Isle Utilities, a global innovation consultancy, to Palatine, a UK-based private equity firm. Isle Utilities specializes in bridging the gap between early-stage water technologies and market adoption, helping utilities address sustainability and climate challenges. This acquisition further underscores private equity’s increasing focus on enabling innovation within the water sector.

The final quarter of 2024 brought a surge in international activity, with major players expanding into new markets and strengthening their digital capabilities. Xylem Inc., a global leader in water solutions, acquired Heusser Water Solutions AG, its longstanding Swiss distributor, to deepen its presence in key growth markets. This move aligns with Xylem’s strategic priorities of delivering innovative and sustainable solutions to utilities and industries. Additionally, Xylem expanded its digital water capabilities by acquiring a majority stake in Idrica, a Spain-based leader in water data management and analytics. By integrating Idrica’s platform into Xylem Vue, the company aims to provide utilities with real-time insights to combat challenges such as water loss and aging infrastructure.

The Asia-Pacific region also saw significant activity, with Saur Group acquiring IWE Malaysia, a specialist in industrial water treatment solutions. This acquisition marks Saur’s entry into the region and establishes IWE as a hub for its operations in Asia. Saur’s expansion into new geographies highlights the global nature of water challenges and the increasing need for localized expertise and solutions.

Private equity remained active in the industrial water segment, as evidenced by the $2 billion acquisition of USALCO by TJC. USALCO, a leading water chemicals provider, is expected to continue its determined facility-centric M&A strategy under TJC’s ownership. This transaction reflects private equity’s confidence in the long-term value of consolidating fragmented segments within the water market.

Another notable transaction in the final quarter was Diehl Metering’s acquisition of PREVENTIO GmbH, a German startup specializing in leakage management and predictive maintenance. PREVENTIO’s AI-powered technology enhances Diehl’s existing analytics portfolio, providing customers with robust tools to manage water and heat resources more efficiently.