M&A · Industrials · Refrigeration & Service Industry Machinery
Xylem Inc. to acquire Evoqua Water Technologies Corp.
Announced Jan 23, 2023 · Closed May 24, 2023
Deal value$7.50BEV $7.50B
Premium29.0%To unaffected price
EV / Adj. EBITDA28.9x4.3x EV / Revenue
ConsiderationAll stock$52.89 per share
Transaction
- Acquirer
- Xylem Inc. (XYL)
- Target
- Evoqua Water Technologies Corp.
- Buyer type
- Strategic
- Offer price per share
- $52.89
- Enterprise value
- $7.50B
- Status
- Closed May 24, 2023
Deal protections
- Break fee (target pays)
- $225M · 3.0%
- Reverse fee (buyer pays)
- $225M · 3.0%
- Go-shop
- No-shop
- Financing
- No financing condition
Advisors
- To the acquirer
- Lazard, Guggenheim
- To the target
- Goldman Sachs, BofA Securities
- Lazard fee
- $25.0M
- Guggenheim fee
- $20.0M
Sector context · Industrials
- Comparable deals
- 82 in the prior 24 months
- Premium
- 29.0% vs. 47.0% sector median
- EV / Adj. EBITDA
- 28.9x vs. 11.9x sector median
- Break fee
- 3.0% vs. 2.8% sector median
Timeline
- AnnouncedJan 23, 2023
- Proxy filedApr 11, 2023
- Definitive proxyApr 11, 2023
- Shareholder voteMay 11, 2023
- ClosedMay 24, 2023
Valuation · fairness opinions
Trading comparablesLazard$92.75$114.25
Trading comparablesLazard$92.75$114.50
Trading comparablesLazard$38.50$48.50
Trading comparablesLazard$37.00$46.50
Discounted cash flowLazard$89.50$113.75
Discounted cash flowGuggenheim$22.20$33.43
Discounted cash flowGuggenheim$32.72$48.73
Trading comparablesGuggenheim$38.00$58.00
Trading comparablesGuggenheim$58.00$87.00
Premiums paidGuggenheim$49.00$54.00
Offer $52.89
Implied value per Evoqua Water Technologies Corp. share by analysis, from Lazard and Guggenheim · DCF discount rate 9.5%–10.5%.