Veolia has reached an agreement with CDPQ to acquire its 30% stake in Veolia’s subsidiary, Water Technologies and Solutions (WTS). This transaction will allow Veolia to take full ownership of WTS, a strategic move aimed at simplifying its organizational structure and generating approximately €90 million in additional annual cost synergies.
The company stated that this acquisition is in line with Veolia’s GreenUp strategic roadmap, which emphasizes capital allocation toward water technologies and the U.S. market—both identified as crucial growth areas.
“The acquisition of CDPQ’s minority interests will further strengthen Veolia’s unique positioning as a global leader in Water Technologies,” the company mentioned 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.”
This transaction will grant Veolia complete operational control of WTS, which the company believes will enhance performance and foster innovation and development through full integration. Veolia anticipates realizing the estimated €90 million in cost synergies by 2027, noting that these synergies have been clearly identified and carry low execution risk due to its existing knowledge of the asset and experience in implementing cost-saving measures.
The acquisition price is set at $1.75 billion (approximately €1.5 billion), which represents about 11 times the projected 2025 EBITDA after synergies. Veolia has indicated that it will remain within its net debt to EBITDA target of 3x following the transaction, thereby maintaining financial flexibility for future initiatives under its GreenUp strategy.
Source: Veolia
