Veralto (NYSE: VLTO) agreed to acquire Cleanwater1 for $465 million, with a net purchase price of approximately $452 million after tax benefits, the companies said on Monday.
The transaction, expected to close in the fourth quarter of 2026 subject to customary conditions, will add Cleanwater1’s on-site hypochlorite disinfection, solids management and odor filtration technologies to Veralto’s portfolio. Cleanwater1 operates about 25,000 units across municipal drinking water, wastewater and industrial applications, generating roughly $135 million in sales over the last twelve months as of June 30, 2026.
Since 2023, Cleanwater1 has expanded its revenue at a compound annual growth rate in the low double-digits. Approximately 25% of its sales come from aftermarket services.
Veralto, which reported annual sales of about $5.5 billion and employs 17,000 associates globally, expects the deal to be neutral to modestly accretive to its adjusted earnings per share in 2027. The acquisition is projected to deliver a return on invested capital at or above Veralto’s weighted average cost of capital by the fourth year post-close.
Veralto CEO Jennifer L. Honeycutt said Cleanwater1’s technologies and installed base would strengthen the company’s Water Quality segment. Cleanwater1 CEO David Stanton said the deal would enable further growth for the business.
