Veolia has entered into an agreement to acquire the 30% minority stake in its subsidiary, Water Technologies and Solutions (WTS), from CDPQ for $1.75 billion (approximately €1.5 billion). The transaction will bring Veolia’s ownership of WTS to 100%, allowing the company full operational control.
The deal is expected to close by the end of June 2025 and is aligned with Veolia’s GreenUp strategic roadmap. The company stated that the acquisition supports its focus on water technologies and its expansion in the United States, both key areas for growth.
Veolia anticipates the transaction will generate approximately €90 million in annual cost synergies by 2027. These synergies have been identified as low-risk due to Veolia’s prior operational knowledge and integration capabilities. The transaction is expected to be accretive starting in 2026 and will contribute to an improved Return on Capital Employed (ROCE) for the Group.
“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,” said Estelle Brachlianoff, Chief Executive Officer of Veolia. “Full ownership will enable us to accelerate growth, enhance operational efficiency and synergies as well as deepen the alignment with strategic priorities.”
CDPQ initially invested in WTS in 2017. Commenting on the divestment, Albrecht von Alvensleben, Managing Director, Head of Private Equity Europe at CDPQ, said: “We are proud of WTS’ achievements since our investment… and we wish them every success in this next chapter.”
Following the transaction, Veolia confirmed its 2025 financial guidance and maintained its target of a minimum 10% EBITDA CAGR for WTS between 2023 and 2027.