Veolia to acquire full ownership of Water Technologies and Solutions from CDPQ

Veolia has signed an agreement with CDPQ to acquire its 30 per cent stake in Veolia’s subsidiary, Water Technologies and Solutions (WTS), giving Veolia full ownership of the company. The move is expected to unlock further value potential, simplify the Group’s structure, and generate approximately €90m in additional run-rate cost synergies.

The acquisition forms part of Veolia’s GreenUp strategic roadmap, with capital allocated to strengthen its position in water technologies and in the United States—both identified as priority growth areas.

By acquiring CDPQ’s minority stake, Veolia will further cement its status as a global leader in water technologies, a market driven by rising demand for solutions addressing water scarcity, climate change, health challenges, and the needs of strategic industries such as semiconductors, pharmaceuticals, and data centers.

Full ownership of WTS will enable Veolia to integrate operations more effectively, enhance performance, and capitalise on innovation opportunities. The Group expects to realise an additional ~€90 million of cost synergies by 2027. These synergies are described as “well-identified” with “very low execution risk” thanks to Veolia’s deep familiarity with the business and its proven track record in extracting efficiencies. The acquisition is expected to be accretive from 2026 and to improve Group ROCE.

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The purchase price of $1.75bn (approximately €1.5bn) represents ~11x EV/post-synergies 2025e EBITDA. Following the deal, Veolia will maintain financial headroom, with its Net Debt/EBITDA ratio remaining below the 3x target, ensuring flexibility to continue executing its GreenUp strategy.

Veolia also reaffirmed its 2025 guidance and GreenUp targets, setting a new goal to achieve an EBITDA CAGR of at least +10 per cent between 2023 and 2027 for its Water Technologies division.

Estelle Brachlianoff, Veolia’s chief executive officer, said: “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, and a segment where we are already a market leader. Full ownership will enable us to accelerate growth, enhance operational efficiency and synergies as well as deepen the alignment with strategic priorities. This move is especially crucial given the urgent and rapidly evolving needs of the market, allowing us to respond faster and more effectively to emerging opportunities and challenges.”

Albrecht von Alvensleben, managing director, Head of Private Equity Europe at CDPQ, added: “We are proud of WTS’ achievements since our investment in 2017, as it has grown into a global market leader in water technologies. Through our partnership, we helped strengthen the company’s foundations and position it for sustained growth and long-term value creation. We are grateful for the close collaboration with the management teams at WTS and Veolia, and we wish them every success in this next chapter.”

The transaction is expected to close by the end of June 2025.