French environmental services group Veolia said it will acquire Caisse de dépôt et placement du Québec’s (CDPQ) 30% stake in its Water Technologies and Solutions (WTS) subsidiary, in a $1.75 billion transaction that gives it full ownership of the business.
The deal, expected to close by the end of June 2025, values the stake at around €1.5 billion ($1.75 billion) and will allow Veolia to simplify its structure, accelerate its GreenUp strategic plan, and unlock an additional €90 million ($105 million) in annual cost synergies by 2027.
WTS, which Veolia acquired in 2017 from GE, has grown into a leading global player in water treatment technologies, supplying industries such as semiconductors, pharmaceuticals, and data centres. Demand for advanced water solutions is expanding as governments and companies respond to climate pressures, water scarcity, and rising public health concerns.
“Full ownership will enable us to accelerate growth, enhance operational efficiency and deepen alignment with strategic priorities,” Veolia chief executive Estelle Brachlianoff said. She called the acquisition “a pivotal step” in the group’s plan to strengthen its presence in water technologies and in the United States, both key growth markets.
Veolia expects the acquisition to be earnings-accretive from 2026 and said it remains within its net debt-to-EBITDA target of three times, preserving financial flexibility for future investments.
The company confirmed its 2025 guidance and reiterated that its water technologies division is aiming for annual EBITDA growth of at least 10% between 2023 and 2027.
CDPQ, which has been invested in WTS since 2017, said it had supported the company’s growth and long-term positioning. “We are proud of WTS’ achievements since our investment,” said Albrecht von Alvensleben, head of private equity Europe at CDPQ. “We wish Veolia success in this next chapter.”
For the Middle East, where water scarcity is one of the most pressing challenges, the deal is expected to boost investment in advanced water treatment and reuse technologies. The GCC is already deploying large-scale desalination and wastewater recycling projects to meet rising urban and industrial demand.
Veolia, which has been present in the region for decades, operates several landmark projects, including desalination and wastewater treatment plants in Saudi Arabia, the UAE, and Qatar.
Shares in Veolia, which reported revenues of €44.7 billion ($52.13 billion) in 2024, are listed on Euronext Paris under the ticker VIE.
