Veolia has entered into an agreement with CDPQ to acquire its 30% ownership stake in Veolia’s subsidiary, Water Technologies and Solutions (WTS). With this transaction, Veolia will assume full ownership of WTS, a move aimed at simplifying its organizational structure and generating approximately €90 million in additional annual cost synergies.
According to the company, the acquisition aligns with Veolia’s GreenUp strategic roadmap, which focuses on capital allocation toward water technologies and the U.S. market—both of which Veolia identifies as key areas for growth.
“The acquisition of CDPQ’s minority interests will further strengthen Veolia's unique positioning as a global leader in Water Technologies,” the company said in a recent press release. “The Group is perfectly positioned to take advantage of the growing demand for innovative water treatment technologies and solutions, fueled by macro-trends such as water scarcity, adaptation to climate change, health concerns and the development of strategic industries such as semiconductors, pharmaceuticals and data centers.”
The transaction will give Veolia full operational control of WTS, which the company says will enhance performance and support innovation and development through full integration. Veolia expects to achieve the estimated €90 million in cost synergies by 2027. The company noted that these synergies have been clearly identified and are associated with low execution risk due to its existing knowledge of the asset and experience in implementing cost-saving measures.
The purchase price for the acquisition is $1.75 billion (approximately €1.5 billion), representing about 11 times the projected 2025 EBITDA after synergies
The purchase price for the acquisition is $1.75 billion (approximately €1.5 billion), representing about 11 times the projected 2025 EBITDA after synergies. Veolia indicated that it will remain within its net debt to EBITDA target of 3x after the transaction, maintaining financial flexibility for future initiatives under its GreenUp strategy.
Veolia has reaffirmed its previously stated 2025 financial and strategic targets, including those for the Water Technologies division. The company now anticipates an EBITDA compound annual growth rate of at least 10% for the Water Technologies segment over the 2023–2027 period.
“This acquisition marks a pivotal step in unlocking the full value potential of Water Technologies, a growth booster identified as a priority in our GreenUp strategic plan, and a segment where we are already a market leader. Full ownership will enable us to accelerate growth, enhance operational efficiency and synergies as well as deepen the alignment with strategic priorities. This move is especially crucial given the urgent and rapidly evolving needs of the market, allowing us to respond faster and more effectively to emerging opportunities and challenges,"said Estelle Brachlianoff, Veolia’s Chief Executive Officer.
“We are proud of WTS’ achievements since our investment in 2017, as it has grown into a global market leader in water technologies. Through our partnership, we helped strengthen the company’s foundations and position it for sustained growth and long-term value creation. We are grateful for the close collaboration with the management teams at WTS and Veolia, and we wish them every success in this next chapter," said Albrecht von Alvensleben, Managing Director, Head of Private Equity Europe at CDPQ.
The closing of the transaction is expected by the end of June 2025.
Veolia Water Technologies segment
- In FY2024, Veolia Water Technologies segment achieved revenues of €4.97bn (41% North America, 25% Europe, 13% Asia Pacific, 13% Africa Middle-East and 8% Latin America) and EBITDA of €612M. The business serves over 8,000 clients in 44 countries, with 38 technological sites and 11 dedicated R&I laboratories.
- Veolia Water Technologies activities include both Veolia WT, 100% owned and Water Technologies and Solutions “WTS” subsidiary, 70% Veolia-30% CDPQ.
Water Technologies and Solutions “WTS” subsidiary;
- WTS was formed as a 70%-30% joint venture between Suez and CDPQ in 2017, before becoming a subsidiary of Veolia following the Veolia–Suez merger in 2022, with CDPQ keeping its 30% minority stake. In FY2024, WTS achieved revenues of €3.3bn ($3.6bn) and EBITDA of €472M ($511M).
