WALTHAM, Mass. — Veralto Corporation announced on Tuesday, August 19, 2026, that it has entered into a definitive agreement to acquire Cleanwater1 for $465 million, subject to customary closing adjustments.
The transaction value adjusts to an estimated net purchase price of approximately $452 million after factoring in anticipated tax benefits. Cleanwater1 generated approximately $135 million in sales over the last twelve months leading up to June 30, 2026, with aftermarket products accounting for roughly 25 percent of that revenue. Company executives stated that the acquisition aligns with Veralto's corporate strategy to expand its portfolio of essential water and product quality solutions.
Financial Metrics and Valuation Structure
The net purchase price represents approximately 17 times Cleanwater1's adjusted earnings before interest, taxes, depreciation, and amortization for the twelve-month period ending June 30, 2026. Since 2023, Cleanwater1 has experienced compound annual sales growth in the low double-digits.
Veralto management anticipates that the transaction will remain neutral to modestly accretive to its adjusted earnings per share by fiscal year 2027. Furthermore, the company expects the acquisition to yield a return on invested capital meeting or exceeding its weighted average cost of capital by the fourth year following completion.
Integration and Operational Timeline
Following the close of the transaction, Cleanwater1 will integrate into Veralto's Water Quality segment, leveraging existing Trojan Technologies customer relationships and established commercial operating systems. The buyer intends to fund the purchase using a combination of available cash on hand and existing credit facilities.
The acquisition is scheduled to officially close in the fourth quarter of 2026, pending regulatory clearances and standard closing conditions.
What are the financial terms of Veralto acquiring Cleanwater1?
Veralto agreed to acquire Cleanwater1 for a total purchase price of $465 million, which reduces to an estimated net purchase price of $452 million after accounting for anticipated tax benefits. This valuation represents approximately 17 times Cleanwater1's adjusted EBITDA for the twelve-month period ending June 30, 2026.
The definitive agreement was publicly announced on August 19, 2026.
The transaction is targeted for final completion during the fourth quarter of 2026.