Investing in water solutions, Veralto agrees to acquire Cleanwater1 for $465 million

Veralto (NYSE: VLTO) has signed a definitive agreement to acquire Cleanwater1 for $465 million, subject to customary closing adjustments. After estimated tax benefits, the net purchase price is approximately $452 million. The transaction is expected to close in the fourth quarter of 2026.

Cleanwater1 provides on-site hypochlorite disinfection, solids management and odor filtration technologies, with an installed base of approximately 25,000 units across municipal drinking water, wastewater and industrial applications.

The net purchase price represents approximately 17 times Cleanwater1’s last twelve months adjusted EBITDA as of June 30, 2026. Over that period, Cleanwater1 generated approximately $135 million in sales, with roughly 25% from aftermarket sales. Since 2023, the company’s sales have grown at a compound annual growth rate in the low double-digits.

Veralto said it expects Cleanwater1’s sales to continue growing in the low double-digits over the next few years by leveraging Trojan Technologies customer relationships and applying the Veralto Enterprise System. The acquisition is expected to be neutral to modestly accretive to Veralto’s adjusted earnings per share in 2027 and generate a return on invested capital at or above the company’s weighted average cost of capital by year four.