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Evoqua makes a speciality of water-treatment know-how.
Dreamstime
Xylem
mentioned Monday that it’s buying its peer
Evoqua
Water Technologies in an all-stock merger that values the goal round $7.5 billion.
Evoqua
shareholders are set to obtain 0.480 shares of
Xylem
(ticker: XYL) for every
Evoqua
(AQUA) share, representing a worth of $52.89 a share. That’s equal to a 29% premium based mostly on the businesses’ closing costs on Friday,
Xylem
mentioned.
Stock in water know-how firm Xylem sank near 10% to $99.50 in premarket buying and selling, whereas Evoqua, a pacesetter in North America water remedy, rose 14% to $46.94.
“Our acquisition of Evoqua creates a transformative global platform to address water scarcity, affordability, and resilience at even greater scale,” mentioned Patrick Decker, CEO of Xylem.
Xylem shareholders will personal round 75% of the merged firm, which might be led by Decker. The two firms generate greater than $7 billion in annual mixed income. The deal is predicted to provide run-rate financial savings of $140 million inside three years.
Write to Adam Clark at [email protected]
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