Evoqua to divest its carbon reactivation and slurry services business to Desotec

Evoqua Water Technologies has entered into a definitive agreement to divest its carbon reactivation and slurry operations to Desotec, a European provider of industrial mobile filtration solutions based on activated carbon technology.

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The agreement includes the product line’s workforce, reactivation facilities and associated equipment in Darlington, Pennsylvania, and Parker, Arizona, and the reactivation and carbon vessel manufacturing facility in Red Bluff, California, USA. The deal is expected to close during Evoqua's third quarter of fiscal 2023, which ends 30 June 2023.

Desotec, which was acquired by private equity funds managed by Blackstone in 2021, is headquartered in Roeselare, Belgium and employs approximately 250 people across Europe.

This is Desotec’s first investment in the US market. The acquired business’ multi-state presence, extensive industrial reactivation capacity and in-house manufacturing of mobile filtration solutions will power Desotec’s growth strategy as it enters the North American market with its plug-and-play 24/7 solution offering and service.

The sale of the carbon reactivation and slurry business will allow Evoqua to focus on its core service business, which includes carbon services and the sale of high-quality activated carbon. After the deal closes, Evoqua will enter into a supply agreement with Desotec for reactivated carbon to continue to service its customers. Carbon is typically used in municipal and industrial applications to remove organic and inorganic contaminants from water sources.

"A critical aspect of our strategy is to focus on businesses aligned with our technology and service core competencies, with the highest potential for global growth, scalability, and value creation,” said Ron Keating, CEO of Evoqua. "We are confident that the carbon reactivation and slurry business will thrive under Desotec's leadership, and we look forward to working together as we provide activated carbon solutions to the marketplace."

Julie Santens, CEO of Desotec, added: “This landmark investment is the first step as we embark on the rollout of our North American growth strategy and further expansion of our leading market position. We are delighted to partner with Evoqua, and look forward to best serving all our customers, employees and other stakeholders involved.”