Water Treatment Giants Join Forces: Culligan Acquires AquaVenture in Historic $1.1 Billion Deal

In a landmark transaction that reshapes the global water services landscape, Culligan has moved to acquire AquaVenture Holdings Limited in an all-cash deal valued at approximately $1.1 billion. Under the agreement finalized between the two industry leaders, AquaVenture shareholders will receive $27.10 per share, representing a substantial premium to recent trading levels.

Understanding the Transaction Structure

The all-cash purchase represents approximately a 25% premium to AquaVenture’s closing share price on December 20, 2019, and a 33% premium relative to the company’s 90-day volume weighted average price. The deal includes AquaVenture’s net debt as part of the overall valuation.

Culligan has secured full debt financing to support the acquisition, with additional equity backing from investment funds managed by Advent International, the private equity firm that owns Culligan. Notably, the transaction contains no financing contingencies, indicating strong confidence from both parties. AquaVenture’s Board of Directors has unanimously approved the merger agreement, and the deal is expected to close in early April 2020, pending shareholder approval and standard regulatory clearances.

Market Position and Business Scope

AquaVenture stands as one of North America’s leading providers of Water-as-a-Service solutions across institutional and commercial sectors. The company operates through two distinct platforms: Quench handles the filtered water systems business with over 155,000 units deployed across the U.S. and Canada serving more than 55,000 customers, while Seven Seas Water specializes in desalination and wastewater treatment, delivering over 8.5 billion gallons of processed and potable water annually to government agencies, municipalities, industrial facilities and hospitality venues throughout the Americas.

The Strategic Rationale

Scott Clawson, Culligan’s Chief Executive, emphasized the acquisition’s strategic value: “AquaVenture represents a leading player in water purification with demonstrated innovation capabilities. The combination creates significant opportunities for mutual growth.”

For AquaVenture, the merger offers access to Culligan’s extensive global distribution network and resources. Anthony Ibargüen, AquaVenture’s President and Chief Executive, noted: “This partnership with Culligan positions our organization within a global water industry leader. Our team looks forward to delivering enhanced value through this combination.”

Culligan’s Market Position and Ownership

Culligan, a privately held company owned by Advent International, operates as a world leader in water treatment solutions. Regarding the question of whether Culligan maintains a public market presence—the answer is no. Culligan operates as a private enterprise under Advent International’s ownership, one of the world’s largest private equity investors managing $54 billion in assets. Since its founding in 1936, Culligan has built the world’s largest franchise dealer network, spanning over 900 locations across 90 countries.

Upon acquisition completion, AquaVenture will transition from its current public listing on the New York Stock Exchange to private ownership, joining Culligan’s platform as a wholly owned subsidiary. This structure allows AquaVenture to maintain operational focus while leveraging Culligan’s scale and resources.

Industry Context and Future Direction

The consolidation reflects broader industry trends toward scale and service integration in the water treatment sector. AquaVenture’s subscription-based WAAS model aligns well with Culligan’s comprehensive water solutions platform, creating a combined entity with enhanced geographic reach and technological capabilities.

Both companies’ advisory teams—including Citi and UBS as financial advisors to AquaVenture, along with legal counsel from Goodwin Procter and Weil, Gotshal & Manges—have facilitated the transaction process to ensure all stakeholders receive proper representation.

About the Companies

Culligan operates as a global water treatment innovator offering premium drinking water systems, water softeners, whole-house solutions and commercial water treatment products. The franchise network represents the industry’s most extensive dealer distribution system.

AquaVenture Holdings developed a leading WAAS platform serving diverse customer segments through long-term contracts that minimize customer capital requirements while ensuring reliable access to clean water.

Advent International, founded in 1984, manages private equity investments across 41 countries and maintains 15 offices in 12 countries with over 200 investment professionals focused on core sectors including business services, healthcare, industrial operations and technology.