Xylem to acquire Pure Technologies for $397 million
Xylem is to buy Pure Technologies, building on a commercial partnership whereby it represents Pure in parts of the Middle East, India, and Southeast Asia.
The deal adds to Xylem’s smart water portfolio with diagnostics and analysis solutions that it said will “strongly complement” the existing offer, including products and services acquired with Visenti and Sensus.
Canada-based Pure provides leak detection and condition assessment solutions for water distribution networks.
“Aging infrastructure is a top concern of water utilities around the world, and infrastructure assessment is an attractive, growing market that directly addresses this challenge,” said Xylem president and chief executive Patrick Decker.
“We have already begun executing on significant international growth opportunities through our existing commercial collaboration. Upon closing this transaction, those efforts will accelerate and expand globally,” he added.
Pure generated adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) of CAD21 million ($17 million) on revenue of CAD126 million ($100 million) in the 12 months to end of September 2017. Xylem expects at least $12 million in annual cost savings within two years of closing, including public company costs, and procurement and footprint consolidation opportunities; as well as revenue synergies from accelerated international growth, and cross-selling.