Evoqua Announces Potential Pricing for IPO

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Evoqua Water Technologies has filed an amended S-1 form with the U.S. Securities and Exchange Commission (SEC) regarding its initial public offering (IPO). The company expects to price its 27.78 million shares in the range of $17 to $19 per share, with an overallotment option for an additional 4.17 million shares. The company is selling 8.33 million shares and the selling shareholders are offering 19.44 million shares. At the maximum price, the entire offering is valued up to $606.94 million. The company intends to list its shares on the New York Stock Exchange under the symbol AQUA.

The underwriters for the offering are Credit Suisse, JPMorgan, RBC Capital Markets, Citigroup, Goldman Sachs, Morgan Stanley, Baird, Raymond James, Stifel and Wells Fargo.

This leading provider of mission critical water treatment solutions offers services, systems and technologies to support its customers’ full water life-cycle needs. With over 200,000 installations worldwide, the company holds leading positions in the industrial, commercial and municipal water treatment markets in North America.

Evoqua offers a comprehensive portfolio of differentiated, proprietary technology solutions sold under a number of market-leading and well-established brands. The company delivers and maintains these mission critical solutions through the largest service network in North America, assuring customers continuous uptime with 86 branches that are located no further than a two-hour drive from more than 90% of customer sites.

The company described its finances as follows:

For the fiscal year ended September 30, 2016, we generated 86% of our revenues in North America with a strong and growing international presence and we currently employ approximately 4,000 individuals across eight countries. For the fiscal year ended September 30, 2016, we generated revenue, net income and Adjusted EBITDA of $1.1 billion, $13.0 million and $160.1 million, respectively. For the fiscal year ended September 30, 2016, we generated pro forma revenue, pro forma net income and Adjusted EBITDA (pro forma as adjusted for contributions from insignificant completed acquisitions) of $1.2 billion, $16.8 million and $182.4 million, respectively.

Evoqua intends to use the net proceeds in this offering to repay approximately $100.5 million of indebtedness (including accrued and unpaid interest) under the term-loan facility, and any remainder for general corporate purposes. The company will not receive any proceeds from shares being offered by the selling shareholders.