Houlihan Lokey Advises Evoqua Water Technologies

Houlihan Lokey is pleased to announce that Evoqua Water Technologies’ (Evoqua) (NASDAQ:AQUA) Carbon Reactivation and Slurry Services Business (the “Business”) has been acquired by Desotec Activated Carbon (Desotec), a portfolio company of Blackstone (NYSE:BX), for about $100 million. The transaction closed on June 15, 2023.

Evoqua, headquartered in Pittsburgh, is a $1.7 billion revenue industry leader in mission-critical water treatment solutions. Evoqua’s decision to divest the Business aligns with its long-term strategy to focus on its core business while streamlining its operations. The transaction comprises (a) three carbon reactivation facilities, inclusive of two with highly desirable resource conservation and recovery (RCRA) permits for the treatment and reactivation of hazardous and nonhazardous carbon and (b) a slurry delivery operation to service activated carbon customers. Concurrent with the closing of the transaction, Evoqua will enter into a supply agreement with Desotec for bulk procurement of reactivated carbon to support customers served through its Carbon Field Services Business. The transaction is expected to close this summer following satisfaction of customary closing conditions, including receipt of regulatory approvals on permit transfers.

Desotec, headquartered in Roeselare, Belgium, was founded in 1990 and is the leading European carbon reactivation solutions provider. Through in-depth expertise in industrial applications and continuous investments in mobile filters, reactivation capacity, and well-positioned hubs, Desotec ensures that the industry can meet the increasing regulations for a better and cleaner environment. The transaction is fundamental to Desotec as it instantaneously provides a substantial presence in the North American reactivated carbon market, allowing the company to deploy its unique closed-loop, “Filtration-as-a-Service” model.

Blackstone acquired Desotec in 2021 through its private equity funds. Blackstone is the world’s largest alternative asset manager, with $975 billion in assets under management.

Houlihan Lokey served as the exclusive sellside financial advisor to Evoqua and assisted in initiating, structuring, and negotiating the transaction on its behalf. This is another successful deal for the firm’s industrial technologies and chemicals teams and demonstrates its continued leadership in advising water solutions and chemicals companies.

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