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TRANSCRIPT
September 2020
WATER INFRASTRUCTURE
COVID-19 ACCELERATES DIGITAL ADOPTION
CONTACTS
Ted Polk
Managing Director
708-921-8961
Lisa Tolliver
Senior Director
773-791-9493
Pre-COVID trends of rapid urbanization and aging water and wastewater
infrastructure have been catalysts for innovation and advancement in the
Water Infrastructure industry. Notably, over 80% of water utilities providers
identify aging infrastructure as their top challenge (Black & Veatch),1
necessitating a substantial rethinking of how the nation’s water networks are
managed and maintained. While COVID-19 has stressed revenues and
financial visibility, it is accelerating the adoption of digital and remote
technologies to drive effective asset management, efficiency, and cost
reduction in water systems. “While the fundamentals are unchanged, other
dynamics are accelerating. Interest in digital adoption has clearly gained pace
as operators seek a step change in their operational and financial resilience. In
a constrained budget environment, they are rethinking how they spend their
money,” Patrick Decker, President, CEO, and Director of Xylem (NYSE:XYL)
commented in a recent earnings call.2
Public companies have combated COVID-19 headwinds, resulting in year-
over-year (YOY) revenue losses among top industry participants including
Mueller Water Products (NYSE:MWA)3 and Evoqua (NYSE:AQUA)4 recording
losses of -16.7% and -3.5%, respectively. However, valuations have improved
significantly following the depths of the pandemic and public players are
trading near yearly EV/EBITDA highs. A sustained recovery is likely to depend
on a resumption of demand among commercial and industrial end users as
businesses continue to reopen. Robust order backlogs and the need for
essential water services present a favorable backdrop for industry operators
providing scalable and cost-effective solutions.
TABLE OF CONTENTS
Industry Outlook
Segment Highlight
M&A Overview
Notable Transactions
Select Transactions
Historic Deal & Valuation Trends
Public Company Data
Firm Track Record
INDUSTRY OUTLOOK
2
Water Infrastructure
COVID-19 Accelerates Digital Adoption
0x
5x
10x
15x
20x
25x
Sep-19 Nov-19 Jan-20 Mar-20 May-20 Jul-20 Sep-20
Evoqua Mueller Suez Watts Water Veolia Xylem
EV
/EB
ITD
A
Tickers: AQUA, MWA, SEV, WTS, VIE, XYL; Year-to-date ended September 4
Source: Capital IQ and Capstone Research
Water Infrastructure Public Company EBITDA
March 11: WHO declares
COVID-19 a pandemic
utilities and service providers seek more transparency and
intelligence-based decision making in their systems’
management. Notably, global spending on digital
solutions is expected to grow eight percent annually from
2019 to 2024, amounting to $47 billion, according to
Global Water Intelligence.10
Following significant disruption at the onset of the
pandemic, trading metrics among public companies in the
Water Filtration and SCADA (supervisory control and data
acquisition) markets have rebounded substantially.
EBITDA multiples for Watts Water Technologies, Xylem,
and Pentair (NYSE:PNR) have all surpassed early 2020
valuations, trading near yearly highs. The pandemic has
encouraged top public players to reprioritize investment
with a focus on digital capabilities. Xylem has outlined
innovation plans with an investment focus on remote
monitoring and connectivity and interoperability
solutions, according to its earnings presentation. In
response to heightened interest in digital adoption, it has
accelerated the deployment of its information technology
platforms that drive efficiencies in remote engagement
and remote servicing. Notably, it will be deploying smart
metering, software, and network solutions for U.K.-based
Anglian Water, which will be implemented across
Anglian’s service area. Revenue recognition for the $90
million contract will begin late in the fourth quarter of
2020. In addition, Pentair launched its Pentair Home
application and has announced plans to introduce new
connected products in the near-term. Merger and
acquisition (M&A) activity has also supported the growing
demand for automation, remote monitoring, and
analytics, evidenced by VertexOne’s acquisition of
WaterSmart Software (see next page).
SEGMENT HIGHLIGHT: WATER FILTRATION & PURIFICATION
Despite water systems’ designation as critical
infrastructure, the pandemic has significantly disrupted
operations across the Water Infrastructure market as
industry service providers have combated project delays,
layoffs, and constrained industrial and commercial
demand. Steep declines in water use among commercial
and industrial users have contributed to a $12.5 billion
revenue shortfall for wastewater utilities, according to the
American Society of Civil Engineers.5 As a result, top
service providers are likewise encountering significant
challenges, with leading water solution providers Watts
(NYSE:WTS)6 and Xylem7 reporting revenue declines of
-18.7% and -13.9% in Q2, respectively. Amid tightened
budgets among operators, however, the pandemic is
magnifying the need for cost-efficient water filtration and
purification solutions, as the demand for ultrapure water
among municipalities and essential end markets remain
unchanged. In fact, according to Evoqua’s latest earnings
call,8 municipal [filtration] demand has remained relatively
stable throughout the pandemic, while end markets
catering to disinfection, pharmaceuticals, and
biotechnology have remained strong. However,
restrictions on entering residents’ homes and workforce
availability have delayed project deployments and
installations of certain water applications. Similarly, Xylem
has noted a 17% decline in revenue YOY in its
measurement & control solutions segment due to lower
levels of in-home meter replacement and installation.
While COVID-19 has delayed infrastructure projects, water
supply construction spending has remained relatively
resilient, increasing month-over-month in May and June
until falling modestly in July, according to the U.S. Census
Bureau.9 The pandemic has highlighted the need for
effective automation and remote monitoring capabilities
in the Water Infrastructure industry, typically an asset-
intensive market and often a laggard in incorporating
advanced technology, which is leading to growing
adoption of digital applications. For instance, social
distancing measures on job sites has encouraged the
application of automation and remote processes to limit
physical interaction among workers. As 56 million new
users are forecasted to be connected to centralized
wastewater treatment over the next two decades, water
filtration and purification monitoring remain inherent
societal needs that can be bolstered by advanced digital
offerings. Smart metering, remote detection, data
analytics, and advanced asset management represent
several applications that have seen heightened interest as
seek
3
Water Infrastructure | September 2020
EV
/EB
ITD
A
Water Filtration Public Company EBITDA
Source: Capital IQ and Capstone Research
2019-2024 ANNUAL GROWTH IN
SPENDING ON DIGITAL SOLUTIONS8.0%
6x
8x
10x
12x
14x
16x
18x
20x
Sep-19 Nov-19 Jan-20 Mar-20 May-20 Jul-20 Sep-20
Watts Water Technologies Xylem
Pentair Dow Jones Industrial
STRATEGIC
PublicPrivate
FINANCIAL
DirectAdd-on
M&A OVERVIEW
4
M&A volume across all industries has fallen markedly, with
transaction activity among middle market companies
declining 22% in Q2 YOY, according to Capstone's Capital
Markets Update. The Water Infrastructure industry has
showcased more severe declines, with 91 transactions
announced or completed year-to-date (YTD) compared to
155 in YTD 2019, a fall of 41% YOY. Through much of the
first half of 2020, strategics (76% of deals) have employed
COVID-19 mitigation strategies including layoffs,
furloughs, and utilization of credit facilities while PE firms
(24% of deals) have focused on the health of platform
investments, promoting a more selective buyer universe.
In a tightened deal environment, targets with a robust
recurring revenue profile, expansive customer base, and
resilient end markets have garnered sustained M&A
interest. In addition, as COVID-19 has accelerated the
adoption of digital technologies, SaaS-based (software as
a service) offerings have become critical for effective
remote monitoring and analytics of water infrastructure.
Leading public companies have recognized the growth
potential for sophisticated technological applications that
drive cost savings and efficiencies and have utilized M&A
to bolster their offerings. Notably, Danaher (NYSE:DHR)
acquired Aquatic Informatics (July, undisclosed) through
its subsidiary Danaher Water Quality Platform. Aquatic
Informatics provides software solutions for critical water
data management, analytics, and compliance for the
Water industry.
Monthly Transactions
Year-To-Date Buyer Breakdown
Nu
mb
er o
f Tr
ansa
ctio
ns
Key Acquisition Traits in Current Environment
Recurring Revenue Profile
Revenue predictability and contract-based
cash flows are crucial, especially as many
industry players have struggled with visibility.
Resilient Operating Model
Water infrastructure is critical to municipalities and
essential end markets; demand in sectors including
Pharmaceuticals and Biotechnology have remained
strong through the pandemic.
Digital Technology Adoption
Smart metering, advanced asset
management, remote monitoring, and SaaS-
based platforms are key offerings.
Balance Sheet Integrity
Healthy balance sheet profiles have helped
major players navigate COVID-19 especially
amid delinquent water bill payments and
spending shortfalls.
Water Infrastructure | September 2020
The application of digital technologies to the water filtration and monitoring markets has drawn strong buyer appetite
through YTD 2020. Industry participants have pursued acquisitions of target companies that offer scalable, cost-effective, and
remote administered filtration and purification solutions. Notably, Sphere 3D (Nasdaq:ANY) has agreed to acquire Rainmaker
Worldwide, a global water-as-a-service provider, (OTC:RAKR) for an enterprise value of $215.1 million (July). Sphere 3D
operates as a data management, virtualization, and containerization provider that offers cloud-based, hybrid cloud, and on-
premise implementation. The acquisition of Rainmaker, which provides compact and scalable technologies for water
purification that enable decentralized deployment, represents the recognition among software providers of the growth
prospects in the tech-enabled water filtration and purification market.
2218
26
1317
20 2118
10 9
14 139
711
18
0
5
10
15
20
25
30
35
40
2019 2020
28.6%
47.3%
7.7%
16.4%
NOTABLE TRANSACTIONS
5
Acquires
Acquires
GEF Capital has acquired leading provider of water and wastewater solutions, EnviroMix, for an
undisclosed sum. South Carolina-based EnviroMix offers cost-effective mixing and process control
technologies that drive enhanced nutrient removal, sustainability, reduced power requirements, and
regulatory compliance. EnviroMix’s innovative patented technologies leverage applications including
compressed gas and human machine interface to provide a low energy and minimal maintenance
solution for installation or upgrades of systems. It serves customers in the Water Storage Tank,
Municipal Wastewater, Industrial Wastewater, and Municipal Water Treatment industries.
GEF Capital is a private equity fund that seeks investment in companies that promote resource
efficiency and sustainability. Existing portfolio companies include Luminae, an efficient lighting
solutions provider, and Gro-Well Brands, a leading green recycling provider. The acquisition provides
Enviromix with additional capital resources and expertise to fuel expansion into new markets and
enhance its water treatment solutions.
The Vertex Group, operator of the VertexOne platform, has acquired leading provider of customer
engagement and analytics solutions to the Water Utility industry, WaterSmart Software, for an
undisclosed sum. WaterSmart offers a SaaS-based platform that leverages advanced leak algorithms to
detect and alert customers of potential leaks, bill forecast notifications, real-time consumption charts,
and mobile-friendly alerts and communications.
The acquisition expands VertexOne’s customer base to approximately 17 million end users and aligns
with its ongoing initiative to provide a robust suite of SaaS applications to facilitate critical asset-to-
cash business processes. In addition, as the Water industry increasingly adopts digital and innovative
technologies, WaterSmart represents the forefront of customer engagement and data analytics
capabilities. “With the continued adoption of advanced metering technologies in the Utility industry,
the WaterSmart cloud-based platform is redefining how utilities and their customers work together to
optimize the use of our precious water resources,” commented Kevin Kern, WaterSmart CEO in a
press release.13
GEF Capital Partners, LLC acquires Enviromix, LLC
(August 2020, Undisclosed)
The Vertex Group acquires WaterSmart Software, Inc.
(May 2020, Undisclosed)
Several notable transactions have been announced or completed in the industry in 2020. Select transactions are outlined belo w,
followed by a more comprehensive list on the following page.
Water Infrastructure | September 2020
Antin Infrastructure Partners has agreed to acquire a majority interest in Miya from Bridgepoint
Advisors for an undisclosed sum. Bridgepoint acquired Miya from Arison Investments in January 2019
for an enterprise value of $260 million.11 Miya provides urban water efficiency solutions to bolster
operational and financial performance to customers in Europe, Caribbean, and Africa. Through its
subsidiary Indaqua, it provides services to approximately 600,000 customers in Portugal through six
long-term contracts and one public private partnership (PPP). Miya has implemented over 200 water
efficiency projects globally for the the reduction of non-revenue water, or water lost during distribution.
The acquisition supports Miya’s growth prospects and the expansion of its global water efficiency
projects. “Miya is a best-in-class water operator with a solid base that will serve as a springboard to
capture the strong growth potential that exists in the sector. We are delighted to support Miya’s
management team in the next stage of the company’s development,” commented Mauricio Bolaña,
Partner at Antin in a press release.12
Antin Infrastructure Partners to acquire Miya Water Spain
(September 2020, Undisclosed)
To Acquire
Enterprise EV / LTM
Date Target Acquirer Target Business Description Value (mm) Revenue EBITDA
08/26/20FRANC
Environmental
Gryphon; Wind
River
Provides septic system and wastewater
management services.- - -
08/18/20 TranswaterPatriot
EnvironmentalOffers water management solutions for the Oil & Gas, Mining, and Solid Waste industries.
- - -
08/17/20 Enviromix GEF CapitalProvides mixing technology solutions for municipal and
industrial wastewater treatment plants.- - -
08/03/20 Water Now RigMax H20 Comprises water purification solutions business. $30.0 - -
08/03/20Midland GIS
Solutions
Surveying and
MappingOffers mapping and inventory collection on water, and sanitary sewer infrastructure.
- - -
08/03/20 GEOAnalyticalAce Products
& ConsultingProvides soil and water analytical testing. - - -
07/17/20 HASA GHK Capital Provides water treatment solutions. - - -
07/15/20Rainmaker
WorldwideSphere 3D Develops patented water purification technology. $215.1 - -
07/14/20Aquatics
Informatics
Danaher Water
Quality Provides software solutions for water data management and analysis.
- - -
06/23/20Environmental
DynamicsKKR
Develops technology and treatment solutions for municipal and industrial wastewater.
- - -
05/29/20Trihedral
Engineering
Delta
ElectronicsProvides windows-based monitoring and control software serving industries including Wastewater.
$32.6 - -
05/21/20Diversified Water
Utilities
Town of
Queen CreekOffers water distribution services. - - -
05/06/20WaterSmart
SoftwareThe Vertex Group
Provides cloud-based customer engagement,
behavioral water efficiency, and data analytics.- - -
04/29/20 Riley WastewaterIndiana American
WaterComprises a wastewater treatment system. $1.5 - -
04/17/20 Viking Supply C.I. ThornburgManufactures pipes, valves, and fittings for water and sewer supply.
- - -
04/06/20 Wigen METAWATER Provides water treatment and purification systems. - - -
04/01/20New Water
Systems
Jack Tyler
EngineeringOffers water and wastewater treatment, distribution, and collection.
- - -
03/30/20 Seven SeasMorgan Stanley
InfrastructureProvides water and wastewater treatment for municipal, industrial, and private clients.
$500.0 - -
03/09/20Leonard
ValveBessemer
Designs and manufactures water temperature control valves and monitoring devices.
- - -
03/09/20Automatic
SystemsVessco
Offers controls and automation for water and wastewater treatment plans in the Upper Midwest.
- - -
02/28/20Infratech Sewer &
Water Services
Environmental 360
Solutions
Provides sewer and pipe inspection, maintenance, and
repair services.- - -
02/06/20 BaswoodCambrian
InnovationDevelops technology-based solutions for wastewater and biosolids treatment.
- - -
01/15/20 Irrisoft Smart Rain Manufactures smart irrigation control products. - - -
Source: Capital IQ, PitchBook, FactSet, and Capstone Research
SELECT TRANSACTIONS
6
Water Infrastructure | September 2020
HISTORIC DEAL & VALUATION TRENDS
PUBLIC COMPANY
YEAR-OVER-YEAR
EBITDA MUTIPLE
EBITDA multiples among public companies have largely outpaced 2019
levels, rebounding strongly from the onset of COVID-19
MERGER &
ACQUISTION
ACTIVITY
Transaction volume and disclosed values have fallen year-over-year in
YTD 2020 although volume has increased in
recent months Nu
mb
er
of
Tra
nsa
cti
on
s
STRATEGIC &
FINANCIAL BUYER
BREAKDOWN
PE has comprised a lower percentage of transactions in YTD 2020 compared to
2018 and 2019, while public and private buyers
have remained constant
Note: Year-to-date (YTD) ended September 1
Source: Capital IQ, FactSet, and Capstone Research
Perc
en
tag
e o
f T
ran
sacti
on
s
Note: Year-to-date (YTD) ended September 1
Source: Capital IQ, FactSet, and Capstone Research
U.S
. D
ollars
in
Millio
ns
En
terp
rise
Valu
e/E
BIT
DA
Source: Capital IQ and Capstone Research
140
91111
138
217
155
91
$0
$5,000
$10,000
$15,000
$20,000
0
50
100
150
200
250
300
2015 2016 2017 2018 2019 YTD 2019 YTD 2020
Transactions Disclosed Value
50.7% 51.6%40.5% 34.8%
52.5% 46.2%
30.7% 28.6%
27.9%28.3%
19.8% 28.0%
8.6% 6.6%12.6%
11.6%8.8% 7.5%
10.0% 13.2% 18.9% 25.4% 18.9% 16.1%
0%
20%
40%
60%
80%
100%
2015 2016 2017 2018 2019 YTD 2020
Private Public PE Platform PE Add-On
Water Infrastructure | September 2020
14.1x
10.4x8.2x
6.9x
13.7x
17.2x
13.9x10.8x
9.3x 8.6x
14.6x
17.2x
0x
5x
10x
15x
20x
25x
30x
Evoqua Mueller Water Suez Veolia Watts Water Xylem
2019 2020
7
PUBLIC COMPANY TRADING & OPERATING DATA
Price % 52 Wk Market Enterprise LTM EV / LTM
Company 09/08/20 High Cap Value Revenue EBITDA Margin Revenue EBITDA
Evoqua Water Technologies Corp. $19.03 75.4% $2,230.3 $3,041.0 $1,458.1 $225.5 15.5% 2.1x 13.5x
Mueller Water Products, Inc. $10.56 83.1% $1,666.5 $1,971.4 $965.7 $186.3 19.3% 2.0x 10.6x
Suez SA $17.83 94.3% $11,145.5 $27,256.7 $19,723.0 $2,935.7 14.9% 1.4x 9.3x
Veolia Environnement S.A. $23.17 67.5% $12,847.3 $28,103.9 $29,571.0 $3,278.2 11.1% 1.0x 8.6x
Watts Water Technologies, Inc. $96.69 84.5% $3,256.1 $3,371.8 $1,516.3 $230.4 15.2% 2.2x 14.6x
Xylem Inc. $81.35 91.1% $14,639.7 $16,371.7 $4,950.0 $958.0 19.4% 3.3x 17.1x
Mean 15.9% 2.0x 12.3x
Median 15.3% 2.1x 12.0x
Harmonic Mean 15.3% 1.7x 11.5x
EV = enterprise value; LTM = last twelve months
$ in millions, except per share data
NM = Not Meaningful
Last Twelve-Month Margin Performance
Last Twelve Month 1-Year Revenue Growth
Source: Capital IQ as of September 8, 2020
8
Water Infrastructure | September 2020
31.6% 33.7%
52.5%
14.7%
42.0%38.3%
15.5%19.3%
14.9%11.1%
15.2%19.4%
0%
10%
20%
30%
40%
50%
60%
70%
80%
Evoqua Mueller Water Suez Veolia Watts Water Xylem
Gross Margin EBITDA Margin
4.3%
1.1%
-0.6%-1.5%
-4.3%-5.8%
-10.0%
-5.0%
0.0%
5.0%
10.0%
Evoqua Mueller Water Suez Veolia Watts Water Xylem
WATER INFRASTRUCTURE REPORT CONTRIBUTORS
Connor McLeod
Research Associate
[email protected] | 617-619-3319
Connor is a Research Associate at Capstone Headwaters primarily specializing in Building Products &Construction Services, Healthcare, Business Services, and Cybersecurity.
Prior to joining Capstone Headwaters, Connor was a specialist with the Investor Services team atBlackRock where he worked with mutual funds, closed end funds, and exchange traded funds andcommunicated fund performance, relevant market dynamics, and facilitated trades for shareholders,financial advisors, and institutional clients. Connor holds a BA in Economics from Bates College and isa Series 7 Registered Securities Representative.
9
Water Infrastructure | September 2020
Lisa Tolliver
Senior Director
[email protected] | 773-791-9493
Lisa has 20 years of experience in the investment banking industry, primarily focused on advisingmiddle market private business owners in liquidity related transactions. As a Senior Director inCapstone Headwaters’ Consumer practice, she works closely with clients to advise and executedomestic and cross-border M&A transactions, recapitalizations and capital raises. Lisa has deep M&Aexpertise and knowledge of businesses in the consumer and e-commerce sector, particularly related tothose selling via direct-to-consumer, Amazon, mass and OTC channels.
Prior to Capstone, Lisa worked in the Capital Strategies Group at Morgan Stanley Smith Barney andalso spent 10 years working for the middle market investment banking arm of Citigroup, where shewas involved in the evaluation, marketing and closing of numerous transactions involving privatebusinesses and corporate divestitures. Lisa received her BA on academic scholarship from Illinois StateUniversity and is a Series 7 and 63 Registered Securities Representative.
Ted Polk
Managing Director
[email protected] | 708-921-8961
Ted is a Managing Director at Capstone Headwaters, based out of Chicago. Previously, Ted was also aManaging Director in Morgan Stanley’s Capital Strategies Group and with Citi Capital Strategies. Hehas over 25 years of transactional experience in various industrial service and product categories.Transactions he has led have been the recipient of multiple industry awards including Cross-BorderMiddle-Market Deal of the Year, Middle-Market M&A Financing Deal of the Year, Middle-Market Dealof the Year, Professional Services Deal of the Year, Corporate M&A Deal of the Year and USARecapitalization Deal of the Year. Previously, Mr. Polk worked at Valuemetrics, Inc. and in theCorporate Banking Group at The Bank of New York. Ted received his BSBA degree from GeorgetownUniversity and MBA from the University of Chicago. He is a Chartered Financial Analyst (CFA), a Series7 and 63 Registered Securities Representative, and a Series 24 Registered Securities Principal.
FIRM TRACK RECORD
Capstone Headwaters maintains active practices in Water and Infrastructure in the middle market, having represented clients
across various specialties including water, roadways, geo-technology, utilities, energy, solar, and communications. This focus
allows Capstone to provide companies with real-time transaction information and immediate access to key decision makers
among the industry’s most active acquirers and investors.
10
Water Infrastructure | September 2020
has been acquired by has been acquired by has been acquired by
has partnered with has been acquired byhas been acquired by has been acquired by
a portfolio company of
has been recapitalized by
has been acquired by has been acquired by
a portfolio company of
has secured debt and equity financing from
backed by
has been acquired by
CITATIONS
1. Black & Veatch, “Water Report,” https://www.bv.com/reports, accessed September 4, 2020.
2. Xylem, “Quarterly Reports,” https://www.xylem.com/en-us/investors/financial-information/, accessed September 4,
2020.
3. Mueller Water Products, “Mueller Water Products Reports 2020 Third Quarter Results,”
http://ir.muellerwaterproducts.com/press-releases/2020/08-05-2020-221140167, accessed September 3, 2020.
4. Evoqua, “Third Quarter 2020 Earnings,” https://aqua.evoqua.com/events-calendar, accessed September 4, 2020.
5. American Society of Civil Engineers, “Status Report: COVID-19’s Impacts on America’s Infrastructure,”
https://www.infrastructurereportcard.org/wp-content/uploads/2020/06/COVID-19-Infrastructure-Status-Report.pdf,
accessed September 8, 2020.
6. Watts Water Technologies, “Waters Water Technologies Reports Second Quarter 2020 Results,”
https://investors.wattswater.com/press-releases/press-release-details/2020/Watts-Water-Technologies-Reports-
Second-Quarter-2020-Results/, accessed September 2, 2020.
7. Xylem, “Xylem Second Quarter 2020 Results,” https://xyleminc.gcs-web.com/static-files/5123b51d-0435-49cd-a73a-
09705dbac35a, accessed September 1, 2020.
8. Evoqua, “Q3 2020 Evoqua Water Technologies Corp. Earnings Conference Call,”
https://aqua.evoqua.com/event/conference-call/q3-2020-evoqua-water-technologies-corp-earnings-conference-call,
accessed September 4, 2020.
9. United States Census Bureau, “Construction Spending,” https://www.census.gov/construction/c30/c30index.html,
accessed September 8, 2020.
10. International Finance Corporation, “The Impact of COVID-19 on Water and Sanitation,”
https://www.ifc.org/wps/wcm/connect/industry_ext_content/ifc_external_corporate_site/infrastructure/resources/the+i
mpact+of+covid-19+on+water+and+sanitation, accessed September 3, 2020.
11. Reuters, “Israel’s Arison sells Miya water firm to Bridgepoint for $260 million, https://www.reuters.com/article/us-miya-
water-bridgepoint-idUSKCN1PM1G7, accessed September 14, 2020.
12. Miya, “Antin Infrastructure Partners to acquire Miya from Bridgepoint,” http://www.miya-water.com/en/news/antin-
infrastructure-partners-to-acquire-miya-from-bridgepoint/, accessed September 14, 2020.
13. Business Wire, “VertexOne Acquires WaterSmart to Expand its SaaS Leadership Position in the Utility Market,”
https://www.businesswire.com/news/home/20200506005191/en/VertexOne-Acquires-WaterSmart-Expand-SaaS-
Leadership-Position, accessed September 3, 2020.
Disclosure: This report is a periodic compilation of certain economic and corporate information, as well as completed and announced merger and acquisi-
tion activity. Information contained in this report should not be construed as a recommendation to sell or buy any security. Any reference to or omission of
any reference to any company in this report should not be construed as a recommendation to buy, sell or take any other action with respect to any security of
any such company. We are not soliciting any action with respect to any security or company based on this report. The report is published solely for the
general information of clients and friends of Capstone Headwaters. It does not take into account the particular investment objectives, financial situation orneeds of individual recipients. Certain transactions, including those involving early-stage companies, give rise to substantial risk and are not suitable for all
investors. This report is based upon information that we consider reliable, but we do not represent that it is accurate or complete, and it should not be relied
upon as such. Prediction of future events is inherently subject to both known and unknown risks and other factors that may cause actual results to vary
materially. We are under no obligation to update the information contained in this report. Opinions expressed are our present opinions only and are subject
to change without notice. Additional information is available upon request. The companies mentioned in this report may be clients of Capstone Headwaters.The decisions to include any company in this report is unrelated in all respects to any service that Capstone Headwaters may provide to such company. This
report may not be copied or reproduced in any form, or redistributed without the prior written consent of Capstone Headwaters. The information contained
herein should not be construed as legal advice.
11
Water Infrastructure | September 2020
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Equity Financing • Growth Equity• Secondary Equity Recaps
• Structured Equity• Acquisition Financing
• Investor Management
Alternatives • Creditor Mediation
• DIP and Exit Financing
• Government Support Programs
Mergers & Acquisitions
We can assist opportunist
acquisitions, execute sales, and
navigate distressed transactions.
Strategic Acquisitions• Target Identification
• Valuation & Structure• Buy-Side Due Diligence
• Quality of Earnings
• Buy-Side M&A Execution
Sales & Divestitures• Corporate Valuation• Market Assessment
• Transaction Readiness• Sell-Side M&A Execution
• Asset Divestiture
Distressed Transactions• Business Unit Divestiture
• Distressed M&A• §363 Sale
WE ARE ENGINEERED TO MEET THE FULL LIFECYCLE DEMANDS OF PRIVATE COMPANIES
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TO LEARN MORE ABOUT OUR SERVICES AND SPEAK TO A MEMBER OF OUR TEAM CONTACT US.
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www.capstoneheadwaters.com
Capstone Headwaters is one of the largest and most active independent investment banking firms in the United States. The
firm has a rich 18+ year history of achieving extraordinary results for middle market entrepreneurs, business owners,
investors, and creditors. The firm offers a fully integrated suite of corporate finance services, including merger & acquisition,
debt & equity placement, ESOP advisory, corporate restructuring, valuation & fairness opinion, and financial advisory
services.
Headquartered in Boston, Capstone Headwaters has over 170 professionals across 17 offices in the U.S. with 16 dedicated
industry groups. Capstone has been recognized consistently as one of the top investment banks to work for and “U.S. Middle
Market Firm of the Year.”
BUILT FOR THE MIDDLE MARKET
UNITED STATES
170+ professionals
17 offices
Boston Boise Burlington Chicago Dallas Denver Greenwich Houston
Los Angeles New York Orange
County Philadelphia San Diego
San Francisco St Louis Tampa
Washington DC
INTERNATIONAL
450+ professionals
60+ offices in 40 countries
Asia: China India Japan Latin America: Argentina Brazil Chile Colombia Mexico Peru
Africa: Congo Egypt Ghana Ivory Coast Mauritius Morocco Senegal South Africa
Europe: Belgium Bosnia Croatia Czech Republic Finland France Germany Herzegovina
Hungary Ireland Italy London Netherlands Norway Poland Russia Serbia Slovenia
Spain Sweden Switzerland Turkey United Kingdom