Veolia Acquires Full Ownership of Water Technologies and Solutions in €1.5bn Deal

Veolia has reached an agreement with Canadian pension fund CDPQ to acquire its 30% minority stake in Water Technologies and Solutions (WTS), giving the French utility giant full ownership of its subsidiary. The transaction, valued at $1.75 billion (approximately €1.5 billion), is expected to strengthen Veolia’s position in the global water technologies sector and accelerate its strategic roadmap.

The acquisition forms part of Veolia’s GreenUp plan, which prioritises growth in the United States and water-related technologies. By consolidating WTS under its full control, Veolia aims to simplify its group structure, enhance performance, and generate an additional €90 million in annual cost synergies by 2027.

“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,” said Estelle Brachlianoff, Veolia’s chief executive officer. “Full ownership will enable us to accelerate growth, enhance operational efficiency and synergies as well as deepen the alignment with strategic priorities.”

The deal positions Veolia to better address global challenges such as water scarcity, climate change, and public health needs, while also meeting rising demand from strategic industries including semiconductors, pharmaceuticals, and data centres.

Veolia highlighted that the expected synergies are “well-identified” and carry “very low execution risk” due to its existing deep knowledge of the WTS business. The acquisition is forecast to be accretive from 2026 and to contribute to an improved return on capital employed (ROCE). The company reaffirmed its 2025 financial guidance and GreenUp targets, and set a new goal for its Water Technologies division to deliver an EBITDA compound annual growth rate of at least 10% between 2023 and 2027.

Despite the size of the purchase, Veolia stressed that it would maintain financial flexibility, with its net debt-to-EBITDA ratio expected to remain below its 3x target. This ensures capacity for further investments in line with its growth strategy.

CDPQ, which first invested in WTS in 2017, welcomed the outcome of the partnership. “We are proud of WTS’ achievements since our investment, as it has grown into a global market leader in water technologies,” said Albrecht von Alvensleben, managing director and head of private equity Europe at CDPQ. “Through our partnership, we helped strengthen the company’s foundations and position it for sustained growth and long-term value creation.”

With this acquisition, Veolia consolidates its leadership in water technology solutions at a time when demand for innovation in sustainable resource management is accelerating worldwide.