Water M&A heads for a record year as sector fundamentals support strong valuations

摘要

2021 seems virtually certain to be a record year for mergers and acquisitions in the water sector, with over $9 billion of deals completed in the first half, and another $45 billion announced for completion before 31 December. While Veolia's take-over of Suez and the subsequent carve-out of the 'new' Suez represent the two most valuable deals in dollar terms, a string of impressive exits in the water sector - supported by record amounts of dry powder, low interest rates, and pending tax hikes in the US - have combined to create a buoyant market which seems set to continue for the foreseeable future. "There's a lot of money out there chasing deals, and a lot of the owners that I'm speaking to are receiving a couple of calls per week. I've never seen so much activity - everybody and anybody is getting their door knocked on," commented Mark Bertler, managing director of the water, wastewater and environmental practice at The McLean Group.