Information on the Target

EQT has announced its agreement to acquire Seven Seas Water Group from Morgan Stanley Infrastructure Partners. Seven Seas is a leading company specializing in the construction and operation of water and wastewater treatment facilities. With a successful track record spanning over 20 years, the company has implemented its innovative Water-as-a-Service® (WaaS®) integrated model, providing efficient and sustainable water solutions across the United States, the Caribbean, and Latin America.

This acquisition will enhance EQT's infrastructure portfolio, as Seven Seas Water Group has established itself as a reliable player in the water treatment sector, meeting growing demand for clean and safe water in various regions.

Industry Overview in the Target’s Specific Country

The water treatment industry in the United States is poised for significant growth driven by a combination of factors including aging infrastructure, increasing regulatory requirements, and the need for sustainable solutions. With an estimated market size surpassing $100 billion, this sector is focused on modernizing systems to ensure reliability and safety in water supply.

In recent years, there has been a heightened awareness of water scarcity and quality issues, pushing municipalities and private sectors to invest heavily in advanced treatment technologies. The COVID-19 pandemic further underscored the importance of clean water, leading to escalating investments in water infrastructure.

Furthermore, the market is witnessing a shift towards innovative service models, such as the WaaS® provided by Seven Seas, which allows customers to manage expenses better while ensuring access to essential services. This model aligns with overall trends towards sustainability and efficient resource management.

The Caribbean and Latin American regions also face similar challenges regarding water accessibility, quality, and management. Countries in these areas are increasingly looking for partnerships to develop sustainable water solutions, which positions Seven Seas Water Group strategically to meet this rising demand.

The Rationale Behind the Deal

The acquisition of Seven Seas Water Group allows EQT to leverage the growing need for advanced water treatment solutions while expanding its presence in the vital infrastructure sector. By integrating Seven Seas into the EQT Infrastructure VI fund, the firm is enhancing its portfolio with an asset that provides essential services in critical markets.

This strategic move comes at a time when the water treatment industry is experiencing robust growth, fueled by both regulatory changes and societal demands for clean water access. Through this acquisition, EQT positions itself to capitalize on emerging opportunities in this evolving landscape.

Information About the Investor

EQT is a leading global investment organization with a strong focus on sustainable infrastructure investments. With a commitment to responsible investing, EQT seeks to create long-term value in its portfolio companies, supporting innovative solutions that address global challenges.

The firm has established a reputation for successfully managing diverse investments across various sectors, including technology, healthcare, and environmental services. EQT's extensive experience and industry insights will be beneficial in maximizing the potential of Seven Seas Water Group and driving future growth.

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Evaluating this acquisition, it appears to be a sound investment for EQT, given the continuous demand for water treatment solutions. Seven Seas Water Group's established operational model and market presence align well with EQT’s objectives in enhancing its infrastructure portfolio. The company's expertise and innovative approach to water management place it at a distinct competitive advantage in a growing market.

Furthermore, the increasing regulatory focus on water quality and safety creates a favorable environment for investment in water treatment capabilities. The trend towards sustainability will likely resonate positively with stakeholders, providing a strong foundation for profitable operations moving forward.

Additionally, Seven Seas Water Group's international reach not only diversifies EQT's investment but also exposes it to the growth potential in emerging markets within the Caribbean and Latin America. This diversification can lead to increased resilience against market fluctuations and further opportunities for expansion.

In conclusion, acquiring Seven Seas Water Group may represent an excellent strategic move for EQT as it seeks to strengthen its investment portfolio in essential infrastructure services, particularly in the context of increasing global water challenges.

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