Water, Wastewater, and Environmental Industry
2025 in Review & 2026 Outlook
Select 2025 Transactions
Recent M&A Engagements
Source: S&P Capital IQ | Water, Wastewater & Environmental Sector
- 01/27/25: Aquarion Water Authority acquires Aquarion Water Company, Inc., a public water supply company serving over 700,000 people across New England. EV: $2.4B.
- 04/25/25: Hawkins, Inc. acquires assets of Surplus Management, Inc., a provider of sustainable water treatment solutions across the United States. EV: $204M (20.4x EBITDA).
- 06/09/25: Honeywell International Inc. acquires Sundyne LLC, a manufacturer of centrifugal pumps and compressors for industrial fluid handling applications. EV: $2.16B (14.5x EBITDA).
- 07/08/25: H2O America acquires Quadvest, L.P., a regulated water and wastewater utility serving the Houston metro area. EV: $484M.
- 10/27/25: American Water Works acquires Essential Utilities, Inc., an operator of regulated water, wastewater, and natural gas utilities across the U.S., creating a ~$63B combined entity. EV: $19.1B (14.3x EBITDA).
- 11/11/25: Parker-Hannifin Corporation acquires Filtration Group Corporation, a designer and manufacturer of filtration products with presence in Life Sciences, HVAC/R, and industrial markets. EV: $9.25B.
- 12/05/25: ITT Industries Holdings, Inc. acquires SPX FLOW, Inc., a portfolio company of Lone Star Funds and manufacturer of highly engineered industrial equipment and flow technologies. EV: $4.8B (16.1x EBITDA).
Market Intelligence
Industry News
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Water Demand from AI & Semiconductor Facilities Accelerates
Surging water demand from AI datacenters and semiconductor manufacturing facilities throughout 2025 supported stronger long-term forecasts and buoyed stock prices across the Components, System Solutions, and Water Utilities indices, even as broader market volatility persisted due to tariff uncertainty.
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PFAS Regulation Drives Compliance Investment Across All Markets
Tightening PFAS mandates and emerging contaminant standards continue to generate durable compliance spending across municipal, industrial, residential, and commercial water treatment markets, creating a multi-year cycle of equipment upgrades, media replacement, and service contract growth.
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Water Infrastructure Spending Outpaces Material Cost Increases
Water supply construction spending outpaced increases in construction materials costs throughout 2025, signaling real demand growth. The U.S. municipal water sector is entering a sustained infrastructure investment cycle driven by aging assets, federal funding support, and increasing utility reliance on private sector expertise.
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Private Equity Consolidation Remains a Primary Demand Driver
PE-driven activity was dominated by smaller platform roll-ups. New Mountain Capital led financial buyers with 10 acquisitions through platforms Azuria Water Solutions and Consor; Sterling Investment Partners (6) and Sylmar Capital (4) were also active, reflecting sustained appetite for fragmented service businesses with recurring revenue and compliance-driven demand.
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Tariff Uncertainty Weighs on Input Costs; Stainless Steel at Risk
The "Liberation Day" tariff announcement caused sharp stock price declines across the water sector in April 2025. Stainless steel prices — a critical input for water treatment equipment — remain threatened by ongoing tariff policy, adding cost uncertainty for equipment manufacturers and end buyers considering new system investments.
M&A Activity
Transactions by Quarter
2022–2025 | Water, Wastewater & Environmental M&A Activity | Source: S&P Capital IQ
Selected 2025 Deals
Notable Transactions
Source: S&P Capital IQ | Company disclosures | *Announced
Environmental Services
GFL Environmental
a 56% stake
acquired by
Apollo & BC Partners
EV: $8.0B
03/01/2025
Water & Wastewater
Newterra Corporation
a portfolio company of Frontenac
acquired by
Grundfos Holding A/S
Treatment Systems
08/20/2025
Water Utilities
Essential Utilities
NYSE: WTRG
acquired by
American Water Works
EV: ~$19B | 15.2x EBITDA
10/27/2025*
Filtration & Separation
Filtration Group
a portfolio company of Madison Industries
acquired by
Parker-Hannifin Corp.
EV: $9.3B
11/11/2025*
Water Management
Leonard Valve
a portfolio company of Bessemer Investors
acquired by
A.O. Smith Corporation
EV: $470M
11/12/2025*
Industrial Equipment
SPX Flow, Inc.
a portfolio company of Lone Star Funds
acquired by
ITT Inc.
EV: $4.8B | 16.1x EBITDA
12/05/2025*
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