Evoqua Water Technologies (NYSE: AQUA), an industry leader in mission-critical water treatment solutions, has entered into a definitive agreement to acquire the assets of the renal business historically operated by Mar Cor Purification and Cantel Medical, subsidiaries of STERIS Plc (NYSE: STE) for $196.3 million. Mar Cor is a leading manufacturer and servicer of medical water, commercial and industrial solutions in North America and will expand Evoqua's service footprint and further its reach into the healthcare vertical market.

The acquired business is headquartered in Plymouth, Minnesota, with 27 service and regeneration facilities in the United States and Canada, and offers significant technical expertise in designing, building, and servicing high-purity water treatment systems to an installed base of approximately 5,500 sites. The acquired business' installed base and large footprint is expected to provide Evoqua with a highly recurring stream of service and aftermarket revenues in an attractive market.

The transaction is anticipated to close during Evoqua's second quarter of fiscal 2022, which ends March 31, 2022, pending customary closing conditions, including regulatory review. The business is expected to generate annualized revenues of approximately $180 million and adjusted EBITDA of approximately $27 million before synergies. Upon closing the transaction, the business will be part of Evoqua's Integrated Solutions and Services segment. The purchase price will be funded through a combination of cash and proceeds from the revolving credit facility.