Mergers and acquisitions in the global water sector: Trends and key deals of 2025

Despite a more subdued transaction count, investment sentiment in the sector remains underpinned by strong fundamentals and a clear recognition of water’s strategic importance. Insights from Saurabh Singh, Vice President of Advisory Services at BlueTech Research, indicate that private equity will continue to shape the trajectory of water infrastructure and treatment technologies. According to Singh, firms are increasingly targeting high-growth assets while preparing for planned exits that align with long-term value creation. He notes that climate resilience and sustainability are becoming defining criteria for capital deployment, driving interest in technologies that support efficient resource management and green water solutions.

However, the reality of 2025’s M&A activity contrasted with the Currents of Capital 2025 report published by global law firm White & Case LLP in May 2025, which had highlighted a surge in investor activity during 2024, with even greater capital deployment anticipated for the year ahead. The report, based on a survey of over 300 senior leaders from utilities, multinational corporations, investment funds, and technology providers across more than 20 countries, noted that nearly one-third of global investors deployed more than US$500 million into water-related assets in 2024, with 15% investing in excess of US$1 billion. Infrastructure funds led this wave, deploying private capital levels approaching those typically seen from public sector funds. The survey had indicated that 72% of organizations expected to increase their investments in 2025, underscoring growing confidence in the sector’s role in economic security and sustainable development. Notably, some organizations had planned particularly ambitious spending increases, with a small but significant share anticipating year-on-year rises of more than 50%.

Mergers and acquisitions: First half of 2025

Despite a more subdued transaction count, investment sentiment in the sector remains underpinned by strong fundamentals

As the first half of 2025 unfolded, notable transactions began to define the year’s M&A activity. Badger Meter, a leading player in water management technologies, announced the acquisition of SmartCover Systems from XPV Water Partners for $185 million. This transaction bolstered Badger Meter’s portfolio of real-time monitoring solutions, particularly in the management of sewer line and lift station operations. SmartCover’s advanced sensors and software will now enhance Badger Meter’s BlueEdge suite, enabling more efficient, predictive maintenance for water utilities.

Veolia secured a strategic partnership with CriteriaCaixa, the investment arm of la Caixa Foundation, which acquired a 5 % stake in the company along with board representation under a stable governance agreement, reaffirming confidence in Veolia’s GreenUp strategic direction. As part of its ongoing portfolio realignment, Veolia also moved to strengthen its position in water technology by acquiring the remaining 30 % ownership stake in its subsidiary Water Technologies and Solutions (WTS) from CDPQ for approximately $1.75 billion. With this transaction, Veolia achieved full ownership of WTS, enabling the company to simplify its organizational structure and unlock additional operational value under its GreenUp roadmap, including an estimated €90 million of cost synergies by 2027. This acquisition reinforces Veolia’s leadership in advanced water treatment technologies and supports its focus on high-growth markets such as the United States. Tetra Tech, a global leader in consulting and engineering services, took a significant step to enhance its capabilities by acquiring the Australia-based SAGE Group. SAGE’s expertise in automation and smart infrastructure services complements Tetra Tech’s strong focus on sustainable water and environmental solutions. The acquisition positions Tetra Tech to deliver more advanced digital systems and integration solutions across municipal water, industrial sectors, and smart infrastructure.

Meanwhile, LG Chem reached an agreement to sell its water filter business to Glenwood Private Equity for approximately $692 million. This decision forms part of LG Chem’s broader strategy to streamline operations and strengthen its financial position amidst increasing market uncertainty. Glenwood Private Equity, as the buyer, will establish a new company to oversee the water filter division’s assets, workforce, and intellectual property.

Mergers and acquisitions: Second half of 2025

In a major move within the semiconductor sector, Ecolab acquired Ovivo’s Electronics business for $1.8 billion

The second half of 2025 saw even more significant developments in the water sector as companies continued to adapt to evolving market conditions and seek strategic growth through M&A. AECOM, a global leader in infrastructure consulting, made headlines with the acquisition of Consigli, a Norwegian AI company specializing in infrastructure design and engineering tools. Valued at approximately $390 million, the deal allowed AECOM to integrate Consigli’s advanced AI-driven capabilities into its portfolio, enhancing its ability to offer cutting-edge, data-driven solutions across global infrastructure projects.

In a major move within the semiconductor sector, Ecolab acquired Ovivo’s Electronics business for $1.8 billion. This acquisition will enable Ecolab to provide its global high-tech customers with circular water management solutions that reduce freshwater use in semiconductor manufacturing while maintaining high production standards. The deal strengthens Ecolab’s position in the growing ultra-pure water market, where demand for innovative, sustainable solutions is increasing rapidly.

TAQA, the Abu Dhabi National Energy Company, completed the acquisition of a 100% stake in GS Inima, a Spanish water treatment and desalination company. Valued at around $1.2 billion, this acquisition expands TAQA’s international water platform and provides access to GS Inima’s vast portfolio of desalination and wastewater treatment projects. With a presence in ten countries and long-term concession agreements, GS Inima’s assets significantly enhance TAQA’s water infrastructure capabilities, especially in Europe, Latin America, and Asia.

Private equity continued to play a pivotal role in the second half of the year. EQT Infrastructure VI made a strategic move by acquiring Seven Seas Water Group, a leading provider of decentralized water and wastewater solutions. With operations across the U.S., Caribbean, and Latin America, Seven Seas has been a key player in addressing water scarcity issues by offering desalination and water purification services. The acquisition by EQT underscores the increasing demand for decentralized water treatment solutions, particularly in areas where traditional infrastructure is lacking or aging.

Aquatech also made a notable move, acquiring Century Water, a Singapore-based company specializing in ultrapure process water and wastewater recycling for high-tech industries such as semiconductors and pharmaceuticals. This strategic acquisition bolsters Aquatech’s capabilities in ultrapure water management, positioning the company to meet the growing needs of the advanced manufacturing sector, which requires precise and sustainable water management solutions.

As 2025 progressed, the water sector’s M&A activity demonstrated both resilience and adaptability in a challenging macroeconomic environment. While fewer deals were recorded compared to previous years, the transactions that took place reflect a focused strategic push by companies to expand their technological capabilities, tap into new markets, and address the increasing global demand for sustainable water solutions.