Pittsburgh-based Evoqua Water Technologies announced Thursday it had entered into an agreement with DESOTEC, a European leader in industrial mobile filtration solutions, to divest its carbon reactivation and slurry operations.
The agreement is expected to close during Evoqua’s third quarter of fiscal year 2023, ending June 30, 2023. The deal will include the product line’s workforce, reactivation facilities, and associated equipment in Darlington, Pa., and Parker, Ariz., and the reactivation and carbon vessel manufacturing facility in Red Bluff, Calif. Gross proceeds of the transaction are expected to be nearly $100 million.
“A critical aspect of our strategy is to focus on businesses aligned with our technology and service core competencies, with the highest potential for global growth, scalability, and value creation,” said Ron Keating, Evoqua’s Chief Executive Officer. “We are confident that the carbon reactivation and slurry business will thrive under DESOTEC’s leadership, and we look forward to working together as we provide activated carbon solutions to the marketplace.”
The sale will allow Evoqua to focus on its core service business, the company said. After the deal closes, Evoqua will enter into a supply agreement with DESOTEC for reactivation carbon, typically used in industrial applications to remove organic and inorganic contaminants from water sources, as a way to continue servicing its clients.
“Today’s announcement marks the beginning of an exciting new chapter for DESOTEC as we continue on our mission to better protect the planet,” Julie Santens, Chief Executive Officer of DESOTEC, said. “This landmark investment is the first step as we embark on the rollout of our North American growth strategy and further expansion of our leading market position. We are delighted to partner with Evoqua and look forward to best serving all our customers, employees, and other stakeholders involved.”