Veralto to acquire Cleanwater1 for $465 million

• Veralto agreed to acquire Cleanwater1 for $465 million to expand its water treatment technology portfolio.
• The deal carries an estimated net purchase price of $452 million after tax benefits and is expected to close in Q4 2026.
• Veralto expects the acquisition to be neutral to modestly accretive to adjusted EPS in 2027.

Veralto (NYSE:VLTO) signed a definitive agreement to acquire Cleanwater1 for $465 million, with an estimated net purchase price of $452 million after tax benefits.

The acquisition adds Cleanwater1’s on-site hypochlorite disinfection, solids management and odor filtration technologies to Veralto’s water-focused operations, with closing targeted for the fourth quarter of 2026.

Cleanwater1 has an installed base of about 25,000 units across municipal, wastewater and industrial markets and generated approximately $135 million in last-twelve-month sales as of June 30, 2026, with about 25% from aftermarket activities.

Veralto expects the transaction to be neutral to modestly accretive to adjusted EPS in 2027 and expects Cleanwater1 to reach a return on invested capital at or above Veralto’s weighted average cost of capital by year four.

The purchase price represents approximately 17 times Cleanwater1’s last-twelve-month adjusted EBITDA, while the company’s sales have grown at a low double-digit compound annual growth rate since 2023.

Veralto said Cleanwater1 is expected to continue growing at a similar rate over the next few years, subject to market conditions and business performance.