Evoqua Water Technologies is selling its carbon reactivation and slurry operations to Blackstone-owned European environmental service company Desotec for $100m (€93m).
Julie Santens, CEO of Desotec, said the investment is the first step as the firm embarks on the rollout of its North American growth strategy and further expansion.
NYSE-listed Evoqua said it has agreed to sell the business unit, including the product line’s workforce, reactivation facilities and associated equipment in Darlington, Pennsylvania, and Parker, Arizona.
The sale of the business, which is expected to complete in the second quarter of 2023, also includes the reactivation and carbon vessel manufacturing facility in Red Bluff, California.
Evoqua said, following the closing of the deal, it will enter into a supply agreement with Desotec for reactivated carbon to continue to service its customers.
The disposal of the business will allow Evoqua to focus on its core service business, which includes carbon services and the sale of activated carbon, Evoqua said.
Ron Keating, Evoqua’s CEO, said: “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.
“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.”
Last month, global water technology company Xylem said it had entered into an agreement to buy Evoqua in a $7.5bn deal, subject to approval by shareholders of Xylem and Evoqua.
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