Honey Is Thicker Than Water

Honeywell, Xylem make bids for Evoqua; IPO closes

Evoqua Water Technologies closed its $500 million IPO (Initial Public Offering) Tuesday along with a full exercise of underwriters’ option to purchase additional shares. This closes its IPO at $18.00 per share, but by no means closes the door on a potential deal involving the water treatment company.

Multiple reports suggest as recently as November 2 (when the IPO opened) that both Xylem and Honeywell were likely to continue pursuit of a purchasing bid for Evoqua. The Pittsburgh-based company provides industrial, commercial and municipal water-treatment solutions and was previously Siemens Water Technologies prior to its 2014 sale. An overall trend is worth watching here—as with recent activity from industrial companies like ABB, Ametek, Danfoss, Eaton, Hitachi, and more—big fish are jumping at the opportunity to buy up smaller, valuable companies with something to offer in ancillary industries.

Evoqua is projected to be worth around $3 billion including debt. It is owned by private-equity firm AEA Investors LP, who made the purchase from Siemens in 2014. Reuters (via the New York Times) reported October 25 that Xylem bid $2.5 million for Evoqua prior to the IPO.

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