Evoqua Water Technologies, provider of mission-critical water treatment solutions, announced it has entered into a definitive agreement to divest its carbon reactivation and slurry operations to DESOTEC, the European market leader for industrial mobile filtration solutions based on activated carbon technology.
The agreement, which includes the product line's workforce, reactivation facilities and associated equipment in Darlington, Pennsylvania, and Parker, Arizona, and the reactivation and carbon vessel manufacturing facility in Red Bluff, California, is expected to close during Evoqua's third quarter of fiscal 2023, which ends June 30, 2023, subject to customary terms, regulatory approvals, and closing conditions. Gross proceeds upon closing of the transaction are anticipated to be approximately $100 million.
The sale of the carbon reactivation and slurry business will allow Evoqua to focus on its core service business, which includes carbon services and the sale of high-quality activated carbon. After close, Evoqua will enter into a supply agreement with DESOTEC for reactivated carbon to continue to service its customers. Carbon is typically used in municipal and industrial applications to remove organic and inorganic contaminants from water sources.
"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," says 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."
Julie Santens, Chief Executive Officer of DESOTEC, adds, “Today’s announcement marks the beginning of an exciting new chapter for DESOTEC as we continue on our mission to better protect the planet. 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.”
