Veralto to buy Cleanwater1 for $465M to expand water treatment reach
What's the deal? VeraltoDealroom has a profile for this one. Try Dealroom → has agreed to acquire Cleanwater1 for $465 million, a move that expands the water quality company into on-site chlorine disinfection, solids management, and odor filtration. The net purchase price, after estimated tax benefits, is roughly $452 million. The deal is expected to close in the fourth quarter of 2026, subject to customary conditions.
What each side brings: Cleanwater1 supplies on-site hypochlorite disinfection and related technologies, with an installed base of about 25,000 units across municipal drinking water, wastewater, and industrial applications. Veralto, a NYSE-listed provider of water and product quality solutions, plans to fold the business into its Water Quality segment alongside its Trojan TechnologiesDealroom has a profile for this one. Try Dealroom → ultraviolet treatment unit.
The rationale: Veralto sees clear commercial synergies between Cleanwater1 and Trojan, aiming to cross-sell through Trojan's customer relationships. It also plans to apply the Veralto Enterprise System and grow recurring revenue from servicing the installed base.
By the numbers: Cleanwater1 generated about $135 million in sales over the last twelve months to June 30, 2026, roughly 25% of which came from aftermarket sales. The company's revenue has grown at a low double-digit compound annual rate since 2023, a pace Veralto expects to sustain. The price equals about 17 times Cleanwater1's last-twelve-months adjusted EBITDA.
What changes: Veralto expects the deal to be neutral to modestly accretive to adjusted earnings per share in 2027, with a return on invested capital at or above its cost of capital by year four.
What they're saying: The acquisition will "expand our presence in attractive, faster-growing water treatment applications while creating meaningful opportunities to drive recurring revenue growth," said Jennifer L. Honeycutt, Veralto's president and chief executive officer. Cleanwater1 chief executive officer David Stanton said joining Veralto "opens incredible opportunities" to meet growing customer demand.
The signal: The purchase reflects continued consolidation in water treatment, where established players are buying niche technology providers to broaden their portfolios and lock in recurring aftermarket revenue. For Veralto, betting on installed-base servicing signals where it sees the most durable growth in the sector.
Read more: PR Newswire
Image credit: The City of Toronto
