Private Equity Adds Water Treatment Chemicals to Their Playbook

In this episode, host Reese Tisdale is joined by Bluefield Research's Senior Analyst, Ethan Edwards, for a deep dive into the recent US$2 billion acquisition of USALCO by private equity firm TJC—the biggest deal in the water sector this year so far. USALCO, a key player in the water and wastewater treatment chemicals market, was acquired from H.I.G. Capital, which retained a minority stake. Reese and Ethan explore the strategic importance of this deal and what it signals for the water sector moving forward. Questions addressed in this conversation: What are the basics of TJC's acquisition of USALCO and its significance in the broader water treatment chemicals market? How has USALCO's acquisitive strategy transformed the company's footprint in the U.S., particularly in the water and wastewater treatment sectors? What role has private equity played in consolidating the water treatment chemicals market, and why is this consolidation happening at such a rapid pace? How are water treatment chemical producers managing high cost pressures, and what are the broader implications for the industry's profitability? Looking ahead, Bluefield's water experts discuss what’s on the horizon for the water treatment chemicals market, including the potential for more M&A activity, IPOs like Solenis’ planned for 2025, and the impact of persistently high interest rates on deal flow. If you enjoy listening to The Future of Water Podcast, please tell a friend or colleague, and if you haven’t already, please click to follow this podcast wherever you listen. If you’d like to be informed of water market news, trends, perspectives and analysis from Bluefield Research, subscribe to Waterline, our weekly newsletter published each Wednesday. Related Research & Analysis: USALCO Deal Points to Private Equity’s Role in Consolidation of Water Treatment Chemicals Water for Chemicals: Market Trends and Forecasts, 2023–2030 Private Equity Takes Wheel of H2O Innovation