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WATER QUARTERLY NEWSLETTER
1
IN THIS ISSUE
Deal in Focus: Desalitech Acquired by
DuPont
Overview of the European Water
Market
COVID-19 and the Water Sector
Sector and Economic Indicators
RJ’s Global Water Team Expansion
Trading and M&A Comparables
Water Quarterly NewsletterSpring 2020
Information obtained from third-party sources is considered reliable, but we do not guarantee that the information herein is accurate or complete. This report was prepared within Raymond James &
Associates' Investment Banking Department and is for information purposes only. This report is not a product of Raymond James & Associates' Research Department; recipients of this report should
not interpret the information herein as sufficient grounds for an investment decision or any other decision. The report shall not constitute an offer to sell or the solicitation of an offer to buy any of the
securities mentioned herein; past performance does not guarantee future results. The information in this material is based upon any management forecasts supplied to us and reflects prevailing
conditions and our views as of this date, all of which are accordingly subject to change. Our analyses are not and do not purport to be appraisals of the assets, stock, or business of the Company or
any other entity. © 2020 Raymond James & Associates, Inc., member of New York Stock Exchange/SIPC.
RJ Water
welcomes two
new bankers in
Europe – bios
on page 15
within
WATER QUARTERLY NEWSLETTER
2
Your success is our business.
Informed Advice.
Quality Results.
Learn how our deep industry expertise and commitment to each
transaction can help you achieve your business objectives.
Companies developing and utilizing creative solutions to help solve the world’s growing water problems can turn to
the Raymond James Water team for results. The team’s expansive industry relationships and deep market insight
allow us to provide comprehensive service to our clients, particularly those addressing the industry’s biggest secular
trends: water scarcity, water quality and aging infrastructure.
As one of the only investment banking teams with a dedicated focus on the industry, you can expect informed
advice and quality results.
WATER QUARTERLY NEWSLETTER
Transaction Represents
Raymond James’ Industry-
Leading 20th Water
Transaction Since 2016
January 2020
Follow-On Offering
$253,500,000
Transaction Represents
Raymond James’ Industry-
Leading 21st Water
Transaction Since 2016
has been acquired by
March 2020
CLANCEY CROWLEY
Vice President
Americas Water
+1 212.885.1821
BRENDAN TIERNEY
Managing Director
Global Head of Water
+1 212.856.4387
ADAM GRAVITT
Associate
Americas Water
+1 212.883.6595
FLORIAN STOEGER
Director
European Water
+49 69.21.93.3722
ALASTAIR ROGERS
Managing Director
European Sustainability
+44 0.203.798.5744
WATER QUARTERLY NEWSLETTER
3
Global Water Intelligence
recognized the sale of
Desalitech to DuPont as the
second-best exit valuation for
the 2010s
• Founded in Israel and headquartered near Boston, MA, Desalitech
provides the most advanced closed circuit reverse osmosis (“CCRO”)
systems on the market
• The Company’s systems save more water and energy, are easier to
use, are more flexible and reliable, and operate at a lower cost than
competing solutions
• The CCRO systems are capable of delivering up to 90-98 percent
water recovery with its single-stage configuration at much greater
reliability compared to traditional three-stage RO systems
• Desalitech sells RO systems into U.S. industrial and municipal end
markets and earns licensing revenue from overseas customers
• The Company’s solution has applications in process water, ingredient
water, pure water supply, boiler and cooling tower make up, PFAS
removal, wastewater reuse, and brackish water desalination
• Desalitech possesses a diversified, blue-chip customer base with over
200 systems installed to date
• The Company has recently added remote monitoring (ReFlex Smart)
services through its integrated mobile application, facilitating operation
of its systems
RATIONALE
FIRST QUARTER DEAL IN FOCUS: DESALITECH ACQUIRED
BY DUPONT
• On January 7th, 2020, DuPont Safety & Construction (“DuPont”), a
segment of NYSE-listed DuPont de Nemours, Inc., finalized its
acquisition of Desalitech (the “Company”), a provider of advanced
closed circuit reverse osmosis systems, for an undisclosed amount
• DuPont is a global provider of technology-based materials, ingredients,
and solutions through its Electronics & Imaging, Transportation &
Advanced Polymers, and Safety & Construction segments
• The transaction in the high-growth water purification space reinforces DuPont’s strategic intent to provide a robust portfolio
of technologies to meet its customers’ current and future challenges while advancing its corporate commitment to
sustainability
• Desalitech presents DuPont with the opportunity to work with OEMs, end users and value chain partners around the world,
using business models such as technology licensing, system sales and fabrication partnerships to increase access to
Desalitech’s CCRO technology
• The acquisition enables Desalitech to have an exponentially greater impact on global water scarcity with many more
partners and users able to access this efficient, resilient and flexible water purification and reuse technology
TRANSACTION OVERVIEW
COMPANY OVERVIEW
Second-Best
Exit Valuation
Sources: Capital IQ, Global Water Intelligence, and Desalitech & DuPont websites and
press releases.
WATER QUARTERLY NEWSLETTER
4
OVERVIEW OF THE EUROPEAN WATER MARKET
The global water market, encompassing the expenditures
for equipment and operations in the provision and
distribution of water and the treatment of wastewater for
municipal, industrial, agricultural and residential
applications, is estimated to exceed EUR 750bn(1) per
year. The European water market accounts for c. 20%(2)
of the global market, or around EUR 150bn per year, and
is expected to exhibit a growth of 100 to 200 basis
points(3) above GDP growth. In the European Union, GDP
growth has historically exceeded 2.0% and is forecasted
to reach 1.4%(4) this year.
European water market of EUR 150bn growing at
100 to 200 basis points above GDP.
With a share of around two thirds of the market, municipal
utility expenditures are driving the European water
market. This section of the market can be further divided
into municipal capital and operating expenditures that
amount to 40% and 60%, respectively. The remainder of
the European water market is dominated by industrial
capital and operating expenditures (c. 15%) as well as
bottled water (c. 14%), point-of-use equipment (c. 2%)
and irrigation equipment (c. 2%) (5).
Market growth in Europe is driven by increasingly
stringent regulation as well as a growing need to address
the three dominating secular trends: aging infrastructure,
water scarcity and water quality.
THE EUROPEAN WATER MARKET Forecasts of municipal utility capital expenditures for
water and wastewater infrastructure across Europe
expect spending to exceed EUR 500bn between 2016
and 2025. More than EUR 225bn of this investment will
be dedicated to maintaining and expanding Europe’s 6.7
million kilometers of aging and leaking pipe networks.
Further regulatory developments may trigger further
investment(7).
AGING INFRASTRUCTURE
Similar to other developed regions such as the United
States, the European water infrastructure is among the
oldest on the planet with many parts of the system
exceeding their useful life of around 60 - 80 years. In fact,
more than 60% of the water infrastructure across
European nations is older than 40 years, creating an
immediate need for maintenance and repair. In Germany
for instance, more than 15% of the sewer network is older
than 75 years and around 7% is older than 100 years(6).
Most countries currently only rehabilitate around 1% of
their network each year, an insufficient amount to keep
the entire network in fully operational condition.
Increasing urbanization across Europe is further putting
pressure on infrastructure in already tarnished condition,
further accelerating the rate of deterioration.
More than 60% of the European water infrastructure
is older than 40 years.
WATER SCARCITY
Water scarcity is not only a challenge in developing
nations but also prevalent in Europe. According to the
Water Exploitation Index, a withdrawal ratio comparing
yearly water abstraction with long-term water resources
across European nations, a number of Mediterranean
countries such as Greece, Turkey, Cyprus and Malta and
also other European nations such as Portugal and the
Czech Republic are classified as water-stressed.
Analyses from the European Environment Agency find
that around 20% of the European territory inhabited by
around one third of Europe’s population experienced
water scarcity conditions during recent summers(8).
According to a World Bank survey, companies in Europe
experience insufficient water supply for their operations
for around seven days during the year.
~1/3 of Europe’s population experienced water
scarcity conditions.
Additionally, water use is inefficient in many parts of
Europe, further exacerbating water shortages during
water-scarce conditions. In France and Spain, for
example, up to 30% of water is lost before it reaches the
end consumer(9).
These conditions create a strong incentive to increase
water reuse in Europe and to initiate further investments
into the water treatment infrastructure.
>35%
China
>65%
USA
>60%
EU
~1.1% ~1.0% ~0.8%
% of sewer network older than 40 years % renewal rate per year
Over the past six months, the Raymond James Water team has continued its aggressive growth with three new hires.
Alastair Rogers and Florian Stoeger will assist with the European roll-out of the water team's global coverage efforts, and
Adam Gravitt will compliment the team in North America. Full bios can be found on page 15.
(1) Average of various market studies.
(2) Extrapolated from global capital
expenditure based on Equilibrium
Water Market Forecast.
(3) Source: RobecoSAM.
(4) Source: European Commission.
(5) Source: GWI.
(6) Source: Reline Europe CDD.
(7) Source: Bluefield Research.
(8) Source: European Environment
Agency.
(9) Source: RobecoSAM.
WATER QUARTERLY NEWSLETTER
5
OVERVIEW OF THE EUROPEAN WATER MARKET (CONT’D)
Similar to the difficulties around water scarcity, insufficient
water quality is another increasing concern in Europe.
According to the latest report from the European
Environment Agency on water quality in Europe, only 40
percent of rivers, lakes, estuaries and coastal waters
reach the ecologically acceptable standard required by
the European Water Directive(1).
The European Union first enacted its Drinking Water
Directive in 1998 and most recently updated its rules in
2018 to improve access to water, upgrade drinking water
standards and increase transparency across its member
states.
While tap water is safe to drink in most European
countries, some Eastern European countries such as
Albania and Montenegro struggle to ensure sufficient
quality of their drinking water. Additionally, several
Southern European nations resort to chlorinating their tap
water in order to make it safe to drink.
Increasing concern on insufficient water quality.
In many European countries, the safest way to consume
water is by resorting to bottled water. Consumption of
bottled water in Europe is especially high in countries with
problematic water supply such as Italy, Hungary, Spain
and Portugal. This circumstance is underpinned by the
fact that 90% of bottled water in Europe is consumed
inside the home. Despite the efforts of the European
Union to increase water quality, the consumption of
bottled water is expected to rise by more than 3.0% per
year in the upcoming years(2).
WATER QUALITY Current trend to focus on strategic core functions.
Suez announced an asset rotation program as part of its
new strategic roadmap in October of 2019, which could
encompass 15% to 20% or up to EUR 4.0bn of overall
assets. In February 2020, the Company declared it would
complete a first wave of divestments amounting to c. EUR
1.5 – 2.0bn during the course of the year. Suez has
begun preparing the sale of selected Northern European
waste and recycling businesses, which includes the
divestment of the Swedish as well as Dutch and Belgian
waste businesses. After exiting these more challenging
businesses, Suez is expected to divest its Spanish water
business Agbar in a transaction that could be valued at c.
EUR 3.0bn (depending on the outcome of the current
legal battle). The Company’s remaining 80% stake in the
Suez North America water business, formerly known as
United Water, is also flagged as a likely divestment
candidate.
Earlier in March 2020, Veolia announced a 20% rotation
of its asset portfolio as part of its “IMPACT 2023” strategic
program. The Company confirmed during its most recent
results conference that it was planning to divest non-
strategic assets worth up to EUR 3.0bn. This
announcement follows already completed sales of its
Chinese municipal utility assets as well as its Swedish
industrial maintenance operations in 2019. Veolia
announced it would remain open to targeted acquisitions
of up to EUR 500m(3).
In the face of the global pandemic surrounding the spread
of the coronavirus that has resulted in M&A activity
grinding to a halt around the globe, the environmental
services sector has shown resilience by marking one of
the largest deals since the beginning of the turmoil. In this
transaction, the buyout of Viridor by KKR, the seller
Pennon Group decided to proceed with KKR’s offer
despite having higher rival bids because it was the most
certain in the current climate. Viridor’s business is
characterized by its resilient and defensive nature that is
supported by long-term contracts with local authorities
that can last up to 25 years. Such traits are common in
the environmental services sector and are expected to
underpin continuing deal activity. Disappointed Viridor
suitors could well make overtures to other participants in
the space such as the aforementioned potential
divestments by Suez and Veolia(4).
CURRENT DEVELOPMENTS IN THE M&A MARKET
After multiple years of market consolidation, major
players in Europe’s water industry recently launched
reorganization strategies by identifying non-core areas
and focusing on strategic core functions. In France, two of
the largest global players – the water and waste
management conglomerates Suez and Veolia – have
recently commenced large-scale portfolio reviews that will
result in divestment programs and refocusing of their
operations by reducing the construction risk. In the UK,
Weir is contemplating disposals, and Pennon Group
recently divested its recycling and waste management
division Viridor after a strategic review of its operations.
Further divestments could come from Engie in France
and EDP in Portugal.
(1) European Environment Agency.
(2) Statista.
(3) Source for the paragraph: MergerMarket Intelligence.
(4) Sources: MergerMarket, Financial Times.
WATER QUARTERLY NEWSLETTER
6
COVID-19 AND THE WATER SECTORGovernments worldwide and the nature of the COVID-19 pandemic have deemed water mission critical; however, the sector
is not completely immune to macro windfalls despite proving it is essential and is adapting accordingly.
In order to preserve cash, businesses are postponing
or cancelling projects, reducing hours, deferring
paychecks, furloughing employees, or laying off
personnel
In compliance with Stay-at-Home orders,
organizations are operating remotely or staggering
shifts if office/facility presence is required
Despite historically low interest rates, non-critical
projects are temporarily halted due to demand
concerns / uncertainty; GWI survey indicates over
50% of CapEx projects are delayed more than a
quarter(1)
Increasing adoption of digital technologies to enhance
remote-control, remote-monitoring, and automation
capabilities to provide workplace flexibility
Utilities are increasingly expanding knowledge sharing
within their networks to relay operational best
practices that combat the spread of COVID-19 and
deliver required essential services
Businesses are reporting slower cash collection
cycles and are consequently managing working
capital more strictly to ensure sufficient cash levels
Companies with strong balance sheets and a growth
mindset are seeking opportunistic investment /
acquisition opportunities as valuations decrease and
distressed assets increase (e.g. midstream oil water
services)
Liquidity concerns are tempting many companies to
tap into undrawn credit lines (incl. revolvers) to
maximize cash and meet OpEx requirements normally
covered by operational cash flow
Businesses facing phased, international supply chain
disruptions have to shift production to facilities that
aren’t capacity constrained in order to meet demand
Businesses are identifying opportunistic markets
primed to benefit from increased infrastructure
investment resulting from government stimulus
measures intended to rejuvenate the economy
OPERATIONAL FINANCIAL
STRATEGIC
BUSINESS RECOVERY FORM
(1) Source: Global Water Intelligence; GWI Magazine March 2020.
V-shape: operations in end markets with
binary consumption demand that have
responded largely by OpEx reductions
U-shape: operations in end markets
requiring longer recovery cycles that have
responded by OpEx and CapEx reductions
L-shape: operations in end markets with
mid-term impacts due to longer phased-
out or cancelled projects / investments
Limited exposure
Utilities with limited construction
exposure
Digital technology
Residential filtration
Midstream oil water services
Trenchless rehabilitation / piping
Mining, chemical, automotive
Commercial filtration in heavily
exposed business models
OUTLOOK
WATER SECTOR EVOLUTION PERSPECTIVES ON M&A
Expedited and increased investment in smart digital technologies
and automation
Increased infrastructure projects resulting from government
stimulus
Strengthened focus on both potable / wastewater treatment
technologies protecting public health
Reduced travel as companies look at remote technologies for
customer engagement and project oversight
• Immediate focus on portfolio
companies
• Sub-debt funding uncertain
amid mixed feedback from
lenders
• Open for smaller
opportunistic investments
• Companies with strong
balance sheets actively
identifying targets
• Uncertainty regarding
recovery shape of targets is
primary source of hesitation
• Increased interest in
distressed assets in vertical
operations
Sponsors Strategics
WATER QUARTERLY NEWSLETTER
77
MACRO INDICATORS
CHINA ECONOMY
EUROPE ECONOMY
US ECONOMY
Hang Seng IndexGDP Growth (PRC) Inflation vs Unemployment(1)
STOXX 600 IndexGDP Growth (EU) Inflation vs Unemployment(1)
S&P 500 IndexGDP Growth (USA) Inflation vs Unemployment(1)
Source: Bloomberg, FactSet. Market data as of 3/31/2020.
(1) Unemployment data is unavailable for the month of March for the US, for both
February and March 2020 for the EU, and is only available quarterly for China. Data
for the most recent quarter is unavailable for China.
WATER QUARTERLY NEWSLETTER
8
AAA 10-Year Muni Index to 10-
Year Treasury RatioMuni Bond Issuance ($ billions)
8
SELECT WATER END-MARKET INDICATORS
US MUNICIPAL
AGRICULTURE
US Corn Futures(1)
INDUSTRIAL
Water Utility Employment (000s)(2)
US Building Permits (000s)(2) US Ductile Iron Pipe Pricing
RESIDENTIAL & CONSTRUCTION
EU PMI(2)
Expanding
Contracting
US PMI
German Building Permits (000s)(3)
Expanding
Contracting
Source: Bloomberg, Municipal Securities Rulemaking Board, Bureau of Labor Statistics, FactSet.
Market data as of 3/31/2020.
(1) Corn Futures Contract from Chicago Board of Trade. Contract size is 5,000 bushels.
(2) Values for March 2020 are extrapolated as the actual values have not yet been made publicly
available.
(3) Values for the months of February and March 2020 are omitted as they are not available.
WATER QUARTERLY NEWSLETTER
99
WATER SCARCITY INDICATORS
STATE WATER PROJECT (SWP) LONG-TERM WATER SUPPLY CONTRACT ALLOCATION LEVELS(3)
PALMER DROUGHT SEVERITY (“PDSI”) INDEX(2)
NASDAQ VELES CALIFORNIA WATER INDEX (NQH2O)(1) ($ Per Acre Foot)
The NQH2O Index benchmarks the price of water across California in a way that supports
price discovery and enables the creation of a tradable financial instrument
The PDSI Index uses readily available temperature and precipitation data to
estimate relative dryness nationwide. Positive numbers indicate wet periods, zero is
normal, and negative numbers indicate droughts
The allocation is the % of each long-term water user’s contracted volume that the state will actually
provide during a given year. In dry years, the allocation is lower because less water is available for
delivery. In wet years, the allocation is higher because more water is available for delivery
Wet Periods
Droughts
(1) Bloomberg. Market data as of 3/31/2020. Used with permission from NASDAQ.
(2) U.S. Department of Commerce, National Environmental Satellite, Data, and
Information Service, as of 3/31/2020.
(3) California Department of Water Resources, as of 3/31/2020.
WATER QUARTERLY NEWSLETTER
1010
M&A OVERVIEW
MIDDLE MARKET ($50 MILLION OF EBITDA OR LESS) LBO PURCHASE PRICE AND NET LEVERAGE MULTIPLES
RECENT SELECT WATER TRANSACTIONS
Since the Great Economic Recession in 2009, middle market LBO purchase price and net leverage multiples have continued
to increase. It has yet to be determined what effects COVID-19 will have on water-related transaction multiples for 2020.
Sources: S&P LCD, CapIQ, MergerMarket, press releases and Raymond James
internal resources.
Date Transaction EV / LTM
Announced Buyers/Investors Target Target Description Value ($mm) Revenue EBITDA
3/30/20 Morgan Stanley Infrastructure Inc. Seven Seas Water Corporation Water production and wastewater treatment plants - - -
3/18/20 KKR & Co. Inc. Viridor Limited Recycling, renewable energy, and waste management $5,174.8 5.2x 19.5x
3/17/20 Synagro Technologies, Inc. Capital Assets of Pace Dewatering Systems Centrigugal dewatering equipment and services - - -
3/9/20 Primo Water Corporation Mountain Valley Water Company Bottled water production and delivery - - -
3/9/20 Bessemer Investor Services, Inc. Leonard Valve Company Water temperature control valves and monitoring devices - - -
3/9/20 Antelope Water Management, LLC Assets of KMX Membrane Technologies Corp. Membrane distillation technology - - -
2/25/20 WaterBridge Centennial Resource Development Oil and gas production $225.0 - -
2/20/20 Liquid Environmental Solutions Atlas Pumping Water-related pump services - - -
2/6/20 Cambrian Innovation Inc. Baswood Corporation Wastewater and biosolids treatment - - -
2/4/20 Ixom Watercare, Inc. Medora Corporation Water container mixing solutions - - -
2/3/20 Bregal Unternehmerkapital GmbH Relineeurope AG Trenchless rehabilitation solutions - - -
2/3/20 Northwest Pipe Company Geneva Pipe, Inc. Precast concrete pipe manufacturer $49.4 1.1x -
1/23/20 TPG Growth Denali Water Solutions LLC Organic residuals management - - -
1/14/20 Nielsen-Kellerman, Inc. RainWise, Inc. Meteorological equipment manufacturer - - -
1/13/20 Cott Corporation Primo Water Corporation Bottled water delivery and filtration services $778.2 2.5x 16.5x
1/13/20 Sciens Capital Management Integrated Water Services, Inc. Water and wastewater treatment solutions - - -
12/23/19 Culligan AquaVenture Holdings Limited Filtered water coolers and wastewater treatment plants $1,130.8 5.7x 14.0x
12/18/19 DuPont de Nemours, Inc. OxyMem Limited Wastewater treatment solutions - - -
12/18/19 HQIB Rausch GmbH and minCam GmbH CCTV pipeline inspection technology - - -
12/10/19 EQT Partners Recover Nordic Plumbing-related damage control services - - -
12/11/19 DuPont de Nemours, Inc. Desalitech, Inc. Closed-circuit reverse osmosis technology provider - - -
12/9/19 Innovyze, Inc. EMAGIN Clean Technologies Inc. AI-driven asset monitoring software provider - - -
11/20/19 Liberty Utilities Co. New York American Water Company, Inc. Water and wastewater services $608.0 - -
11/25/19 Saur Riventa Limited Pump system optimization - - -
11/18/19 DS Services of America The Water Guy Water bottle delivery services - - -
11/15/19 Almar Water Servicios España Osmoflo SpA Water treatment plant operator - - -
11/13/19 Oldcastle Infrastructure, Inc. Torrent Resources, Inc. Precast concrete stormwater drainage solutions - - -
11/10/19 FSN Capital Partners iMPREG GmbH Trenchless rehabilitation solutions - - -
11/1/19 Waterlogic Plc Pure Water Technology (Ohio & Georgia Dealers) Water cooler provider - - -
10/30/19 Consolidated Water Co. Ltd. PERC Water Corp. Wastewater treatment facility developer $4.1 - -
10/17/19 Holland Pump Company Alpha Pump & Equipment, Inc. Water pump distributor and service provider - - -
10/4/19 Culligan Rayne Corporation Water treatment systems and products - - -
10/3/19 Trimble Cityworks Infrastructure and property management software - - -
10/3/19 DuPont de Nemours, Inc. Memcor Microfiltration membrane technology $110.0 1.6x 12.2x
WATER QUARTERLY NEWSLETTER
11
M&A OVERVIEW (CONTINUED)
Sources: S&P LCD, CapIQ, MergerMarket, press releases and Raymond James
internal resources.
Date Transaction EV / LTM
Announced Buyers/Investors Target Target Description Value ($mm) Revenue EBITDA
10/1/19 Evoqua Water Technologies LLC Frontier Water Systems Water treatment solutions - - -
9/30/19 Culligan Oasis International Water cooler provider - - -
9/17/19 Aqua America Assets of DELCORA Municipal wastewater system $276.5 - -
9/5/19 Montrose Environmental Group, Inc. Emerging Compounds Treatment Technologies Environmental treatment technologies - - -
8/27/19 Servelec Technologies Limited Primayer Limited Water network monitoring - - -
8/5/19 Chemed Corporation Substantial Assets of HSW RR, Inc. Plumbing services $120.0 - -
8/1/19 Advanced Drainage Systems, Inc. Infiltrator Water Technologies, LLC Wastewater treatment solutions $1,080.0 3.7x 12.1x
7/23/19 DuPont de Nemours, Inc. inge GmbH Ultrafiltration technology - - -
7/22/19 Hydro International M&N Electrical and Mechanical Services Ltd Wastewater treatment products and services - - -
6/13/19 FCC Aqualia, S.A. SPI Environnement Water treatment solutions - - -
5/17/19 GIC Pte. Ltd. WaterBridge Resources, LLC Midstream development focusing on water infrastructure $2,800.0 - -
4/24/19 XRI Blue Fountain Quail Water management solutions for oil & gas - - -
4/10/19 Behrman Capital Waterline Renewal Technologies, Inc. Undeground pipe restoration services $125.0 - -
4/8/19 A. O. Smith Corporation Water-Right, Inc./Mineral-Right, Inc. Water treatment systems $107.0 - -
3/26/19 Olympus Partners Tank Holdings Corp. Bulk storage and material handling products - - -
3/14/19 Laurel Solutions Servelec Technologies Limited Remote telemetry unit manufacturer - - -
2/25/19 First Reserve Corporation Trillium Flow Technologies Pump and valve technologies $359.3 - -
2/8/19 Kurita Water Industries Ltd. U.S. Water Services, Inc. Water treamtment chemical provider $270.0 - -
2/7/19 Xylem Inc. Aquatune Hydrogren fuel systems - - -
2/8/19 Refresco Group B.V. Cott Beverages LLC Beverage and food services $50.0 0.6x -
1/20/19 Shawcor Ltd. ZCL Composites Inc. Fiberglass underground storage tanks $229.8 1.7x 12.5x
1/10/19 Pentair plc Aqua Membranes LLC Water filtration membrane technology - - -
1/7/19 Pentair plc Pelican Water Systems Water softener and water filter systems $120.0 3.2x -
1/7/19 Pentair plc Aquion, Inc. Water treatment equipment and solutions $160.0 2.2x -
1/2/19 Ostara Nutrient Recovery Technologies Inc. Substantially all Assets of Multiform Harvest Inc. Agricultural run-off treatment systems - - -
12/27/18 J.F. Lehman and Company, LLC Inland Pipe Rehabilitation LLC Undeground pipe restoration services - - -
12/18/18 Quench USA, Inc. Pure Water Technology Water cooler provider $57.0 2.9x N/A
12/1/18 Yantai Jinzheng Eco-Technology Co., Ltd AMS Technologies Ltd. Nanofiltration and ultrafiltration membranes $9.5 - -
11/6/18 Oaktree Capital Management MWH Constructors Water-focused construction services - - -
11/1/18 Platinum Equity, LLC Water Care Business of Lonza Group Water treatment services $630.0 - -
11/1/18 AquaVenture Holdings Limited AUC Group, Inc. Water production and wastewater treatment plants $130.0 - -
10/31/18 WaterBridge Resources, LLC Infrastructure Assets in the Delaware Basin Water infrastructure $325.0 - -
10/1/18 Eurofins Scientific SE TestAmerica Environmental Services, LLC Environmental testing services $175.0 0.8x -
10/1/18 Suez Ventures Optimatics Pty Ltd. Water and wastewater system management software - - -
9/24/18 EQT Partners Saur Water, wastewater, and solid waste management - - -
9/20/18 Ovivo Inc. Filterboxx Modular water and wastewater treatment systems - - -
9/3/18 DuBois Chemicals, Inc. Triwater Holdings - Treatment Water treatment and infrastructure services $165.0 - -
8/30/18 XPV Water Partners Metasphere Ltd Remote telemetry unit manufacturer - - -
8/28/18 Marlowe Plc Suez's UK Water Conditioning Services Unit Water treatment and testing $5.8 - -
8/7/18 Culligan Water Co. Holding LLC Water cooler services - - -
8/6/18 Kao USA Inc. Washing Systems, LLC Commercial laundry processing products - - -
7/30/18 Northwest Pipe Company Ameron Water Transmission Group, LLC Steel and concrete pipe manufacturer $38.3 0.7x -
7/26/18 PGGM Infrastructure Fund SUEZ Water Resources Inc. Waste and waste cycle management $3,005.0 - -
7/23/18 Culligan Aqua Vital Mineral water dispensers and water coolers - - -
7/18/18 Custom Molded Products Aqua Sun Ozone International Water and air sanitizers - - -
7/2/18 United Rentals, Inc. Bakercorp International Holdings, Inc. Liquid contrainment and treatment solutions $715.0 2.4x 9.1x
6/28/18 Bain Capital Private Equity, LP Italmatch Chemicals S.p.A. Performance additive manufacturer - - -
6/20/18 Evoqua Water Technologies LLC ProAct Services Corporation Environmental air and water treatment solutions $132.0 2.4x 11.0x
6/7/18 Milestone Partners Management Co., L.P. RedZone Robotics, Inc. Remote pipeline inspection technology - - -
5/30/18 Kurita Water Industries Ltd. 51% of Fracta, Inc. Potable water distribution monitoring software $37.0 - -
5/3/18 Solenis International BASF Chemical manufacturer - - -
4/23/18 SPX Corporation ELXI Corporation (d/b/a Cues) Remote pipeline inspection technology $189.0 2.1x -
Median $132.0 2.1x 11.0x
Mean $502.4 2.4x 11.3x
WATER QUARTERLY NEWSLETTER
12
AGRICULTURE ENGINEERED SOLUTIONS FLOW CONTROL
INFRASTRUCTURE
RESIDENTIAL & COMMERCIAL
SERVICES SMART TECH
SPECIALTY CHEMICAL
PUBLIC COMPANY COMPARABLE UNIVERSE
Set forth below, we have classified select publicly traded companies within the water universe into nine subsectors. We
recently recategorized the sector groups given the growing importance on smart tech, services, and engineered solutions
providers. In addition, we increased the representation of non-U.S. companies to reflect the addition of the water-related
bankers in Europe.
UTILITIESSPECIALTY DISTRIBUTION
This report includes logos or other words or devices that may be registered trademarks of their respective
owners. Such use is solely for purposes of convenience in referring to the trademark owners and their
products/services. This report and its contents are not endorsed, sponsored or affiliated with any trademark
owner. Raymond James & Associates, Inc. and its affiliates are not affiliated with any trademark owner but
may provide certain financial services to one or more trademark owners or their affiliates.
WATER QUARTERLY NEWSLETTER
1313
SPECIALTY CHEMICAL SPECIALTY DISTRIBUTION UTILITIES
PUBLIC COMPANY VALUATION: EV / LTM EBITDA
INFRASTRUCTURE RESI & COM SERVICES SMART TECH
AGRICULTURE ENGINEERED SOLUTIONS FLOW CONTROL
Source: Bloomberg market data as of 3/31/2020.
Note: Values represent the median EV / LTM EBITDA multiples for each sector over
the course of the period. For additional detail on the companies within each sector, see
detail pages in the back of the newsletter.
WATER QUARTERLY NEWSLETTER
14
INDUSTRY PERFORMANCE OVERVIEW
STOCK PRICE PERFORMANCE
REVENUE CAGR (’20-’22)
GROSS MARGIN (LTM)
Source: CapIQ market data as of 3/31/2020.
Note: Values represent the median price, revenue CAGR, and gross margin for each
sector over the course of the period. For additional detail on the companies within each
sector, see detail pages in the back of the newsletter.
WATER QUARTERLY NEWSLETTER
15
Over the past six months, the Raymond James Water team has continued its focus on growth with three new hires.
Alastair Rogers and Florian Stoeger will assist with the European roll-out of the water team's global coverage efforts and
Adam Gravitt will compliment the Americas team.
WATER INVESTMENT BANKING TEAM
Broc Edwards
Analyst
Americas Water, New York City
Previous Experience:
Keefe, Bruyette & Woods
Education:
Michigan State University
O: +1 212 883 6585
Robert Weiner
Analyst
Americas Water, New York City
Previous Experience:
Skyway Group
Education:
University of Virginia
O: +1 212 883 6582
The broader team is excited about leveraging the leading transaction experience in the Americas and Europe with
increasing coverage in all geographies where our clients have operations.
Previous Experience:
Canaccord Genuity
Hawkpoint
UBS Investment Bank
Education:
University of Cambridge
Alastair Rogers
Managing Director
European Sustainability, London
O: +44 0.203.798.5744
Previous Experience:
Robert W. Baird
Deloitte Financial Services
Education:
Lancaster University
Vienna University
Florian Stoeger
Director
European Water, Frankfurt
O: +49 69 21 93 3722
Previous Experience:
Unilever
U.S. Navy
Education:
Columbia Business School
Texas A&M
Adam Gravitt
Associate
Americas Water, New York City
O: +1 212 883 6595
Brendan E. Tierney
Managing Director
Global Head of Water, New York City
Previous Experience:
Janney Montgomery Scott
Rabobank
Citigroup
Education:
Cornell University
Tufts University
O: +1 212 856 4387
Clancey W. Crowley
Vice President
Americas Water, New York City
Previous Experience:
Citigroup
AllianceBernstein
U.S. Navy
Education:
New York University
Georgetown University
O: +1 212 885 1821
WATER QUARTERLY NEWSLETTER
16
• Full-service financial services firm with investment banking, equity research, institutional sales & trading and asset
management operations
• Founded in 1962 and public since 1983 (NYSE: RJF)
• Fiscal 2019 net revenue of over $7.7 billion; net income of approximately $1.1 billion
• Total market capitalization of approximately $9.0 billion; client assets of approximately $840 billion
• More than 125 consecutive quarters of profitability
• Over 8,000 financial advisors in more than 3,000 retail offices serving approximately 3 million accounts throughout the
United States, Canada and overseas
• European operations in the United Kingdom, France, Belgium, Germany and Switzerland
• 29 North American and international investment banking and institutional sales offices with over 420 bankers
INVESTMENT BANKING OVERVIEW
RAYMOND JAMES AWARDS & RECOGNITION
M&A Advisory Public OfferingsPrivate
Placements
MIDDLE MARKET
INVESTMENT BANK OF THE
YEAR
(2010)
AMONG THE “MOST
ADMIRED” SECURITIES
COMPANIES
(2011)
RANKED
2nd PLACE
“BEST ON THE STREET”
(2011)
INVESTMENT
BANKING
FIRM OF THE YEAR
(2016)
USA MIDDLE MARKET
M&A INVESTMENT BANK
OF THE YEAR
(2016)
RECEIVED
16 STARMINE
ANALYST AWARDS
(2017)
INVESTMENT SERVICES
PROVIDER OF THE YEAR –
USA
(2014)
INDUSTRIALS DEAL
OF THE YEAR
(2019)
PRACTICE OVERVIEW
RAYMOND JAMES OVERVIEW
• Exclusive Sales
• Acquisition Advisory
• Management Buyouts
• Leveraged Buyouts
• Fairness Opinions
• Initial Public Offerings
• Follow-On Offerings
• At-the-Market Offerings (ATMs)
• Senior & High Yield Debt
• Convertible Securities
• PIPEs
• Private Equity
• Senior Debt
• Subordinated Debt
Criteria for the awards can be found at
https://www.raymondjames.com/corporations-and-institutions/accolades.
Raymond James Overview information as of 3/31/20.
WATER QUARTERLY NEWSLETTER
17
REPRESENTATIVE CREDENTIALSRaymond James has participated in many industry-shaping transactions, including mergers and acquisitions, strategic
advisory, fairness opinions and equity and debt capital raises, within the water and wastewater space.
Initial Public Offering
$134,550,000
October 2016 September 2015
$13,000,000
Private Placement
Environmental
Disposal
Corporation
January 2016
has been acquired by
July 2015
$43,480,000
has been acquired by has been acquired by
May 2015
has been acquired by
June 2017 April 2017
$26,000,000
Private Placement
August 2017
has been acquired byhas sold its assets to
Heart of Texas
Suppliers
October 2017
$59,000,000
June 2018
has acquired
November 2017
$575,000,000
Initial Public Offering
$442,750,000
Follow On Offering
March 2018June 2018
has been acquired by
$132,000,000
June 2018
has acquired
by way of an MBO backed by
Carve-out Sale of
March 2019 December 2018
a portfolio company of
has been acquired by
$58,000,000
April 2019
has been acquired by
C$312,000,000
Follow-On Offering
$79,600,000
July 2019
June 2014
has completed a
recapitalization led by has been acquired by
October 2014
$10,000,000
April 2014
Common Stock
Private Placement
March 2014
has sold substantially all of
its OCTG assets to an
affiliate of
SB International Inc.
$42,720,000
January 2015
$160,000,000
has been acquired by
a portfolio company of
July 2019
has been acquired by
a portfolio company of
September 2019
has been acquired by
a portfolio company of
October 2019
has received a majority
investment from
November 2019
has been acquired by
a portfolio company of
January 2020
has been acquired by
October 2017
has been acquired by
March 2020
Follow-On Offering
$253,500,000
Note: Includes transactions completed by Raymond James or senior bankers while at
previous firms.
WATER QUARTERLY NEWSLETTER
18
WATER CONFERENCE CALENDAR: NEXT 12 MONTHS
30 August – 1 September 2020 Madrid, Spain
Major annual international
business meeting for the water
industry
7 – 11 September 2020 Munich, Germany
The largest platform water,
wastewater, waste and raw
materials management
3 – 7 October 2020 New Orleans, LA
The largest event of its kind in
North America, offering water
quality education and training
27 – 29 October 2020 Los Angeles, CA
Important annual meeting point for
senior executives working within
the North American water sector
22 – 25 February 2021 Indianapolis, IN
World’s largest annual trade show
for wastewater and environmental
service professionals
27 – 29 April 2021 Las Vegas, NV
International trade association
representing the residential,
commercial and industrial water
treatment industry
TBD TBDThe largest trenchless technology
conference in North America
WATER QUARTERLY NEWSLETTER
19
Appendix ADetail for Comparable Companies
WATER QUARTERLY NEWSLETTER
20
As o
f 03/3
1/2
020.
(In m
illio
ns o
f U
SD
, except
per
share
data
)M
ark
et
Sta
tisti
cs
LT
M F
ina
ncia
l P
erf
orm
an
ce
Gro
wth
Le
vera
ge
Valu
ati
on
Metr
ics
Lis
tin
gS
toc
k
% o
f 52 W
eek
Div
ide
nd
En
terp
rise
Mark
et
Gro
ss
EB
ITD
AR
even
ue
CA
GR
LT
ME
V /
Reven
ue
EV
/ E
BIT
DA
Co
mp
an
yC
ou
ntr
yP
rice
Hig
hL
ow
Yie
ldV
alu
eC
ap
Reven
ue
EB
ITD
AM
arg
inM
arg
in'1
8 -
'2
0'2
0 -
'2
2G
ross
Net
LT
M
NT
ML
TM
N
TM
Ag
ricu
ltu
re
Lin
dsay C
orp
ora
tio
nU
nited S
tate
s$91.5
882%
127%
1.3
%$1,0
15
$990
$446
$46
28.9
%10.3
%(1
4.0
%)
7.5
%3.2
x0.6
x2.3
x2.2
x22.1
x16.6
x
Raven I
ndustr
ies,
Inc.
United S
tate
s$21.2
353%
133%
2.4
%768
762
383
55
32.5
%14.5
%(1
0.4
%)
-0.1
x-
2.0
x2.1
x13.9
x19.5
x
Th
e T
oro
Com
pany
United S
tate
s$65.0
977%
125%
1.5
%7,6
46
6,9
63
3,3
03
516
35.4
%15.6
%-
5.3
%1.5
x1.3
x2.3
x2.1
x14.8
x12.9
x
Valm
ont
Industr
ies,
Inc.
United S
tate
s$105.9
868%
128%
1.6
%2,8
61
2,2
81
2,7
67
323
25.0
%11.7
%1.5
%2.0
%2.7
x1.7
x1.0
x1.0
x8.8
x8.9
x
Mean
1.7
%30.5
%13.0
%(7
.6%
)4.9
%1.9
x1.2
x1.9
x1.9
x14.9
x14.5
x
Med
ian
1.6
%30.7
%13.1
%(1
0.4
%)
5.3
%2.1
x1.3
x2.1
x2.1
x14.3
x14.7
x
En
gin
eere
d S
olu
tio
ns
A.
O.
Sm
ith C
orp
ora
tio
nU
nited S
tate
s$37.8
167%
112%
2.4
%$5,9
09
$6,1
25
$2,9
93
$538
39.5
%18.0
%(8
.5%
)1.3
%0.6
x-
2.0
x2.0
x11.0
x10.9
x
Advanced D
rain
age S
yste
ms,
Inc.
United S
tate
s$29.4
457%
133%
1.0
%3,3
10
2,0
25
1,5
75
277
28.2
%17.6
%-
-3.9
x3.6
x2.1
x1.9
x12.0
x8.4
x
Alfa L
aval A
B (
publ)
Sw
eden
172.2
5 k
r66%
118%
-8,1
25
7,2
73
4,9
79
920
32.9
%18.5
%(4
.7%
)1.7
%1.7
x1.0
x1.6
x1.8
x8.8
x9.7
x
Danaher
Corp
ora
tio
nU
nited S
tate
s$138.4
182%
116%
0.5
%100,6
82
96,4
57
17,9
11
4,4
71
55.7
%25.0
%4.4
%7.5
%5.0
x0.6
x5.6
x4.9
x22.5
x18.3
x
DuP
ont
de N
em
ours
, In
c.
United S
tate
s$34.1
029%
120%
3.1
%42,2
43
25,2
13
21,5
12
5,1
81
35.8
%24.1
%-
2.6
%3.5
x3.2
x2.0
x2.0
x8.2
x8.4
x
Evoqua W
ate
r T
echnolo
gie
s C
orp
.U
nited S
tate
s$11.2
144%
158%
-2,1
65
1,3
07
1,4
68
216
30.9
%14.7
%5.7
%3.0
%4.9
x4.0
x1.5
x1.5
x10.0
x9.4
x
Halm
a p
lcU
nited K
ingdom
£19.2
185%
116%
0.8
%9,4
57
9,0
70
1,5
73
365
49.9
%23.2
%-
5.7
%1.3
x1.0
x-
5.5
x-
22.6
x
IDE
X C
orp
ora
tio
nU
nited S
tate
s$138.1
178%
132%
1.3
%10,8
31
10,5
29
2,4
95
678
45.2
%27.2
%(3
.3%
)3.1
%1.4
x0.4
x4.3
x4.5
x16.0
x17.1
x
ME
TA
WA
TE
R C
o.,
Ltd
.Japan
¥3,8
65.0
087%
126%
1.5
%760
780
1,1
38
87
22.3
%7.6
%12.1
%-
1.3
x-
0.7
x0.6
x8.7
x7.9
x
Penta
ir p
lcU
nited S
tate
s$29.7
663%
135%
2.4
%6,0
16
4,9
89
2,9
57
527
35.6
%17.8
%0.2
%2.9
%2.1
x1.9
x2.0
x2.0
x11.4
x10.8
x
Mean
1.6
%37.6
%19.4
%0.8
%3.5
%2.6
x2.0
x2.4
x2.7
x12.1
x12.3
x
Med
ian
1.4
%35.7
%18.2
%0.2
%3.0
%1.9
x1.5
x2.0
x2.0
x11.0
x10.2
x
Flo
w C
on
tro
l
Flo
wserv
e C
orp
ora
tio
nU
nited S
tate
s$23.8
944%
126%
3.1
%$4,0
47
$3,1
27
$3,9
45
$500
33.3
%12.7
%0.0
%2.2
%3.1
x1.8
x1.0
x1.0
x8.1
x7.5
x
Fra
nklin
Ele
ctr
ic C
o.,
Inc.
United S
tate
s$47.1
377%
114%
1.2
%2,2
70
2,1
89
1,3
15
163
32.6
%12.4
%0.9
%-
0.9
x0.5
x1.7
x1.7
x13.9
x14.3
x
Gra
co I
nc.
United S
tate
s$48.7
386%
127%
1.5
%8,1
93
8,2
10
1,6
46
468
52.2
%28.5
%(0
.9%
)1.8
%0.4
x-
5.0
x5.1
x17.5
x18.1
x
Muelle
r W
ate
r P
roducts
, In
c.
United S
tate
s$8.0
163%
121%
2.3
%1,6
05
1,2
66
988
194
34.4
%19.6
%3.5
%-
2.5
x1.8
x1.6
x1.6
x8.3
x7.6
x
Roto
rk p
lcU
nited K
ingdom
£2.1
562%
121%
2.5
%2,2
02
2,3
34
886
224
43.3
%25.2
%(7
.0%
)3.7
%0.1
x-
2.5
x2.9
x9.8
x11.1
x
SP
X F
LO
W,
Inc.
United S
tate
s$28.4
257%
181%
-1,6
94
1,2
12
1,5
07
169
34.5
%11.2
%(1
9.0
%)
-4.6
x2.8
x1.1
x1.2
x10.0
x10.7
x
Sulz
er
Ltd
Sw
itzerla
nd
61.1
0 C
HF
54%
152%
5.7
%2,5
41
2,1
57
3,8
50
410
30.1
%10.7
%8.5
%3.1
%3.6
x0.9
x0.7
x0.6
x6.2
x-
Th
e G
orm
an-R
upp C
om
pany
United S
tate
s$31.2
179%
145%
2.0
%735
814
398
57
25.8
%14.3
%0.0
%-
0.0
x-
1.8
x1.8
x12.9
x11.8
x
Th
e W
eir G
roup P
LC
United K
ingdom
£7.2
140%
118%
5.3
%3,7
71
2,3
29
3,5
25
512
31.1
%14.5
%(0
.1%
)4.8
%3.7
x3.0
x1.1
x1.2
x7.4
x7.6
x
Watt
s W
ate
r T
echnolo
gie
s,
Inc.
United S
tate
s$84.6
574%
123%
1.1
%2,9
99
2,8
63
1,6
01
249
42.3
%15.6
%2.0
%3.2
%1.4
x0.5
x1.9
x1.8
x12.0
x11.5
x
Xyle
m I
nc.
United S
tate
s$65.1
373%
119%
1.5
%13,5
86
11,7
38
5,2
49
952
39.1
%18.1
%0.5
%4.2
%2.7
x1.9
x2.6
x2.6
x14.3
x14.3
x
Mean
2.6
%35.8
%16.8
%(1
.7%
)2.7
%1.9
x1.5
x1.9
x2.0
x10.8
x11.6
x
Med
ian
2.3
%33.9
%13.5
%0.0
%2.7
%1.7
x1.8
x1.7
x1.7
x9.9
x11.1
x
Infr
astr
uctu
re
AE
CO
MU
nited S
tate
s$29.8
557%
137%
-$8,5
84
$4,7
35
$20,0
53
$949
4.3
%4.7
%(1
7.9
%)
-4.6
x3.9
x0.4
x0.6
x9.0
x11.3
x
Aegio
n C
orp
ora
tio
nU
nited S
tate
s$17.9
376%
135%
-848
552
1,2
14
96
20.5
%7.9
%(3
.5%
)3.0
%3.7
x3.0
x0.7
x0.7
x8.8
x8.0
x
Fo
rterr
a,
Inc.
United S
tate
s$5.9
839%
173%
-1,6
68
388
1,5
30
179
19.4
%11.7
%1.0
%2.1
%7.4
x7.2
x1.1
x1.1
x9.3
x7.7
x
H2O
Innovatio
n I
nc.
Canada
C$0.6
348%
117%
-53
34
97
524.1
%5.6
%13.8
%-
4.7
x3.8
x0.5
x0.5
x9.8
x7.6
x
Nort
hw
est
Pip
e C
om
pany
United S
tate
s$22.2
561%
123%
-195
217
279
37
15.1
%13.2
%-
-0.3
x-
0.7
x0.6
x-
-
Orio
n G
roup H
old
ings,
Inc.
United S
tate
s$2.6
043%
170%
-193
77
708
34
9.0
%4.7
%13.1
%4.3
%3.5
x3.4
x0.3
x0.3
x-
-
Prim
oris S
erv
ices C
orp
ora
tio
nU
nited S
tate
s$15.9
066%
169%
1.4
%1,2
51
767
3,1
06
226
10.7
%7.3
%7.7
%-
2.7
x2.1
x0.4
x0.4
x-
-
Sta
nte
c I
nc.
Canada
C$36.0
085%
135%
1.6
%3,7
80
2,8
38
2,8
61
339
54.1
%11.9
%2.7
%2.4
%3.6
x3.0
x1.3
x1.4
x11.1
x8.9
x
Suez S
AF
rance
€9.2
858%
115%
4.6
%20,7
99
6,3
69
20,2
17
2,9
73
28.4
%14.7
%(0
.9%
)2.5
%5.3
x3.9
x1.0
x1.1
x7.0
x6.0
x
Te
tra T
ech,
Inc.
United S
tate
s$70.6
271%
119%
0.7
%4,3
38
3,8
62
2,4
50
242
17.1
%9.9
%7.4
%-
2.4
x2.0
x1.8
x1.7
x17.9
x-
Veolia
Environnem
ent
S.A
.F
rance
€19.4
867%
122%
2.6
%24,7
78
11,8
70
30,5
11
3,4
88
15.9
%11.4
%1.0
%3.2
%5.5
x3.4
x0.8
x0.8
x7.1
x-
Mean
2.2
%19.9
%9.4
%2.5
%2.9
%4.0
x3.6
x0.8
x0.8
x10.0
x8.3
x
Med
ian
1.6
%17.1
%9.9
%1.9
%2.7
%3.7
x3.4
x0.7
x0.7
x9.2
x7.9
x
Va
lue
s t
ha
t e
xce
ed
or
fail to
re
ach
an
ap
pro
pri
ate
th
resh
old
fo
r e
ach
ca
teg
ory
are
exclu
de
d.
COMPARABLE COMPANIES DETAIL
WATER QUARTERLY NEWSLETTER
21
COMPARABLE COMPANIES DETAIL
Va
lue
s t
ha
t e
xce
ed
or
fail to
re
ach
an
ap
pro
pri
ate
th
resh
old
fo
r e
ach
ca
teg
ory
are
exclu
de
d.
As o
f 03/3
1/2
020.
(In m
illio
ns o
f U
SD
, except
per
share
data
)M
ark
et
Sta
tisti
cs
LT
M F
ina
ncia
l P
erf
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Gro
wth
Le
vera
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Valu
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Metr
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Lis
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toc
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% o
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Div
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Mark
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Gro
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EB
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even
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CA
GR
LT
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Reven
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EV
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BIT
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Reven
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EB
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arg
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ross
Net
LT
M
NT
ML
TM
N
TM
Resid
en
tial
& C
om
merc
ial
Serv
ices
Ara
mark
United S
tate
s$19.9
742%
207%
2.0
%$12,4
07
$5,0
38
$16,2
16
$1,3
50
12.1
%8.3
%(2
.7%
)5.3
%5.6
x5.5
x0.8
x0.8
x9.2
x9.6
x
Com
pass G
roup P
LC
United K
ingdom
£12.6
459%
146%
3.2
%29,3
54
24,9
89
30,5
99
2,5
64
23.3
%8.4
%7.8
%1.6
%1.9
x1.7
x1.0
x1.0
x11.4
x11.4
x
Ecola
b I
nc.
United S
tate
s$155.8
374%
125%
1.0
%51,8
47
45,0
61
14,9
06
3,3
21
41.7
%22.3
%(2
.8%
)2.2
%2.1
x2.0
x3.5
x3.6
x15.6
x16.3
x
Prim
o W
ate
r C
orp
ora
tio
nC
anada
C$12.7
760%
138%
2.5
%2,6
69
1,4
10
2,3
95
308
51.3
%12.8
%(1
4.6
%)
5.4
%5.1
x4.4
x1.1
x1.3
x8.7
x8.1
x
Serv
iceM
aste
r G
lobal H
old
ings,
Inc.
United S
tate
s$27.0
046%
153%
-5,2
46
3,6
57
2,0
77
396
43.3
%19.1
%-
4.8
%4.7
x4.0
x2.5
x2.7
x13.2
x16.4
x
Mean
2.2
%34.3
%14.2
%(3
.1%
)3.9
%3.9
x3.5
x1.8
x1.9
x11.6
x12.3
x
Med
ian
2.2
%41.7
%12.8
%(2
.7%
)4.8
%4.7
x4.0
x1.1
x1.3
x11.4
x11.4
x
Sm
art
Tech
AB
B L
tdS
witzerla
nd
17.0
1 C
HF
69%
121%
4.5
%$44,1
11
$37,6
53
$27,9
78
$3,5
15
32.2
%12.6
%(7
.8%
)7.7
%2.9
x1.7
x1.6
x1.8
x12.5
x13.7
x
Badger
Mete
r, I
nc.
United S
tate
s$53.6
076%
129%
1.2
%1,5
25
1,5
60
425
86
38.5
%20.3
%(0
.6%
)2.8
%0.2
x-
3.6
x3.6
x17.7
x17.7
x
Danaher
Corp
ora
tio
nU
nited S
tate
s$138.4
182%
116%
0.5
%100,6
82
96,4
57
17,9
11
4,4
71
55.7
%25.0
%2.2
%7.5
%5.0
x0.6
x5.6
x4.9
x22.5
x18.3
x
Em
ers
on E
lectr
ic C
o.
United S
tate
s$47.6
561%
126%
4.0
%34,0
75
29,1
54
18,3
76
3,7
09
42.5
%20.2
%0.3
%3.4
%1.8
x1.3
x1.9
x1.9
x9.2
x9.5
x
Energ
y R
ecovery
, In
c.
United S
tate
s$7.4
462%
122%
-340
413
87
15
76.6
%17.7
%-
13.4
%0.8
x-
3.9
x3.1
x22.2
x17.9
x
Itro
n,
Inc.
United S
tate
s$55.8
363%
138%
-3,1
35
2,2
42
2,5
02
276
30.1
%11.0
%3.0
%-
3.7
x3.1
x1.3
x1.2
x11.3
x10.1
x
Schneid
er
Ele
ctr
ic S
.E.
Fra
nce
€78.5
874%
127%
3.1
%54,6
49
47,5
25
30,4
77
5,4
65
38.5
%17.9
%0.1
%4.0
%1.7
x1.0
x1.8
x1.9
x10.0
x10.6
x
Trim
ble
Inc.
United S
tate
s$31.8
368%
159%
-9,7
61
7,9
63
3,2
64
632
57.5
%19.3
%0.7
%7.1
%3.1
x2.8
x3.0
x3.1
x15.5
x13.4
x
Xyle
m I
nc.
United S
tate
s$65.1
373%
119%
1.5
%13,5
86
11,7
38
5,2
49
952
39.1
%18.1
%0.5
%4.2
%2.7
x1.9
x2.6
x2.6
x14.3
x14.3
x
Mean
2.5
%45.6
%18.0
%(0
.2%
)6.2
%2.4
x1.8
x2.8
x2.7
x15.0
x13.9
x
Med
ian
2.3
%39.1
%18.1
%0.4
%5.6
%2.7
x1.7
x2.6
x2.6
x14.3
x13.7
x
Sp
ecia
lty C
he
mic
al
Cla
ria
nt
AG
Sw
itzerla
nd
16.2
7 C
HF
68%
116%
3.0
%$7,1
35
$5,5
60
$4,5
42
$469
31.5
%10.3
%(1
8.8
%)
4.0
%5.0
x3.0
x1.6
x1.6
x15.2
x9.4
x
Ecola
b I
nc.
United S
tate
s$155.8
374%
125%
1.0
%51,8
47
45,0
61
14,9
06
3,3
21
41.7
%22.3
%(1
.4%
)2.2
%2.1
x2.0
x3.5
x3.6
x15.6
x16.3
x
Haw
kin
s,
Inc.
United S
tate
s$35.6
074%
133%
2.7
%449
379
541
61
18.3
%11.3
%-
-1.3
x1.1
x0.8
x-
7.3
x-
Kem
ira O
yj
United K
ingdom
£8.8
359%
110%
5.7
%2,3
90
1,4
84
2,9
87
393
15.5
%13.1
%(1
.2%
)2.2
%2.7
x2.3
x0.8
x0.8
x6.1
x-
Kurita
Wate
r In
dustr
ies L
td.
Japan
¥2,4
98.0
070%
124%
2.3
%2,7
20
2,6
07
2,4
18
465
34.9
%19.2
%3.3
%1.8
%1.1
x0.2
x1.1
x1.1
x-
6.3
x
Mean
2.9
%28.4
%15.3
%(4
.5%
)2.5
%2.4
x1.7
x1.6
x1.8
x11.1
x10.7
x
Med
ian
2.7
%31.5
%13.1
%(1
.3%
)2.2
%2.1
x2.0
x1.1
x1.3
x11.3
x9.4
x
Sp
ecia
lty D
istr
ibu
tio
n
Fe
rguson p
lcU
nited K
ingdom
£50.5
666%
137%
3.2
%$17,2
73
$14,0
62
$22,1
29
$1,8
04
28.7
%8.2
%(0
.6%
)4.7
%2.3
x1.9
x0.8
x0.8
x9.6
x8.9
x
HD
Supply
Hold
ings,
Inc.
United S
tate
s$28.4
360%
131%
-7,1
60
4,6
05
6,1
46
825
39.1
%13.4
%(1
.8%
)6.0
%3.1
x3.1
x1.2
x1.2
x8.7
x8.9
x
Pool C
orp
ora
tio
nU
nited S
tate
s$196.7
783%
123%
1.1
%8,5
83
7,9
21
3,2
00
370
28.9
%11.6
%10.3
%5.0
%1.9
x1.8
x2.7
x2.6
x23.2
x21.4
x
SiteO
ne L
andscape S
upply
, In
c.
United S
tate
s$73.6
262%
138%
-3,8
48
3,0
77
2,3
58
183
32.8
%7.7
%18.3
%7.7
%4.3
x4.2
x1.6
x1.5
x21.1
x18.7
x
W.W
. G
rain
ger,
Inc.
United S
tate
s$248.5
072%
124%
2.0
%15,6
27
13,3
38
11,4
86
1,6
36
38.3
%14.2
%2.3
%5.1
%1.5
x1.3
x1.4
x1.4
x9.6
x10.2
x
Mean
2.2
%32.2
%11.0
%2.6
%5.2
%2.4
x2.3
x1.5
x1.5
x13.8
x13.1
x
Med
ian
2.2
%28.9
%11.6
%(0
.6%
)5.0
%2.3
x1.9
x1.2
x1.2
x9.6
x8.9
x
Uti
liti
es
Am
erican S
tate
s W
ate
r C
om
pany
United S
tate
s$81.7
485%
126%
1.4
%$3,5
11
$3,0
13
$474
$164
54.5
%34.6
%5.9
%4.0
%3.0
x3.0
x-
7.3
x21.4
x20.6
x
Am
erican W
ate
r W
ork
s C
om
pany,
Inc.
United S
tate
s$119.5
684%
130%
1.5
%31,1
26
21,6
37
3,6
10
1,8
02
57.2
%49.9
%5.3
%4.5
%5.3
x5.3
x-
8.2
x17.3
x15.9
x
Art
esia
n R
esourc
es C
orp
ora
tio
nU
nited S
tate
s$37.3
894%
125%
2.7
%499
345
84
36
49.2
%43.0
%-
-4.3
x4.3
x6.0
x5.8
x13.9
x-
Calif
orn
ia W
ate
r S
erv
ice G
roup
United S
tate
s$50.3
288%
127%
1.6
%3,3
98
2,4
42
715
201
49.5
%28.2
%4.6
%5.6
%5.0
x4.7
x4.8
x4.5
x16.9
x14.1
x
Consolid
ate
d W
ate
r C
o.
Ltd
.U
nited S
tate
s$16.4
087%
137%
2.3
%223
247
69
16
37.7
%23.2
%0.3
%-
0.3
x-
3.2
x3.4
x14.0
x22.3
x
Essentia
l U
tilit
ies,
Inc.
United S
tate
s$40.7
075%
134%
2.1
%11,2
01
9,9
72
890
514
65.1
%57.7
%-
-6.0
x2.4
x-
6.7
x21.8
x13.7
x
Glo
bal W
ate
r R
esourc
es,
Inc.
United S
tate
s$10.1
968%
120%
2.6
%337
230
35
15
81.1
%43.2
%3.1
%-
7.5
x7.0
x-
9.0
x22.0
x18.8
x
Mid
dle
sex W
ate
r C
om
pany
United S
tate
s$60.1
286%
123%
1.6
%1,3
12
1,0
48
135
50
50.0
%37.3
%1.1
%-
5.3
x5.2
x-
9.4
x-
-
Pennon G
roup P
lcU
nited K
ingdom
£10.8
690%
157%
3.7
%10,0
96
5,6
83
1,7
65
669
64.9
%37.9
%1.5
%(2
.2%
)7.1
x6.5
x5.7
x5.7
x15.1
x14.5
x
Severn
Tre
nt
Plc
United K
ingdom
£22.8
084%
121%
4.4
%14,5
75
6,7
61
2,2
18
1,0
72
62.8
%48.3
%0.6
%(2
.6%
)7.2
x7.2
x-
6.5
x13.6
x12.5
x
SJW
Gro
up
United S
tate
s$57.7
777%
127%
2.0
%3,0
56
1,6
46
420
139
53.3
%33.0
%17.1
%7.2
%-
--
5.7
x22.1
x14.1
x
Th
e Y
ork
Wate
r C
om
pany
United S
tate
s$43.4
687%
135%
1.7
%669
566
52
30
79.9
%58.2
%3.8
%-
3.4
x3.4
x-
12.6
x22.3
x-
United U
tilit
ies G
roup P
LC
United K
ingdom
£9.0
384%
122%
4.7
%17,4
89
7,6
64
2,2
60
1,3
71
50.2
%60.7
%2.2
%(3
.9%
)7.6
x7.1
x-
7.7
x12.8
x12.7
x
Mean
2.5
%58.1
%42.7
%4.1
%1.8
%5.2
x5.1
x4.9
x7.1
x17.8
x15.9
x
Med
ian
2.1
%54.5
%43.0
%3.1
%4.0
%5.3
x5.2
x5.2
x6.7
x17.1
x14.3
x