H2O Innovation Inc. (“H2O Innovation” or the “Corporation”) today announced that it has acquired NextEra Distributed Water (the “Business”) via a carve-out transaction. Going forward, the Business and its portfolio of sustainable wastewater treatment and reuse projects will operate under the H2O Innovation brand as its newly formed Water Infrastructure & Development business line.
H2O Innovation has been delivering and operating WaterHub® assets (“WaterHubs”) through an existing commercial partnership with the Business for several years. WaterHubs are onsite wastewater treatment and reuse facilities deployed at a wide variety of sites including hospitals, universities, and other commercial & industrial locations that are delivered for no upfront capital cost to customers and operated under long-term contracts, offering reliable water management solutions that minimize risk, maximize financial savings, and enhance environmental stewardship. The acquisition allows H2O Innovation to bring this large-scale asset development and ownership capability in-house, significantly accelerating the Corporation’s intentions to build a leading water infrastructure solutions company and offering a new set of innovative financing solutions for its clients across North America.
The team joining H2O Innovation has extensive experience delivering compelling water and energy management strategies, including biological and process water treatment, water-based heat transfer, and central utility plant operations. The Business will now have access to the full resources of H2O Innovation, including design, engineering, system fabrication and installation, commissioning, operations, maintenance, and a full suite of consumables and other specialty products to enhance project delivery and capabilities. Importantly, H2O Innovation will continue to offer these solutions on a technology-agnostic basis, and the team will remain focused on “best fit” approaches across all aspects of project delivery, including the use of third-party vendors where products and services are preferable to those that can be offered in-house.
“This acquisition is a significant milestone for H2O Innovation. The holistic approach to sustainable water management offered by WaterHubs aligns seamlessly with our core values and expertise,” said Frédéric Dugré, President and Chief Executive Officer of H2O Innovation. “By adding the Business to our portfolio, we are not only enhancing our capabilities but also creating unparalleled value for our customers and partners. Together, we will drive innovation and set new standards in our industry.”
The Business will continue to be managed by Casey Allen, who will serve as Group Vice President and Managing Director of Water Infrastructure & Development. Allen will remain supported by the same full leadership team including Bob Salvatelli, Director - WaterHub Origination, Daniel Allison, Director of Planning and Preconstruction, Eric Lohan, Technology Director, and Joseph Hamel, Director of Development as well as the full team of passionate and experienced staff that has driven success in the Business to date.
“We are excited to announce this transaction. Our customers can rest assured they will continue working with the same dedicated WaterHub team they have always relied on. By joining H2O Innovation, a group dedicated to sustainable water solutions, we are creating real value for our customers as we continue to develop WaterHub projects,” said Bob Salvatelli, Director - WaterHub Origination.
In the area of customer financing options, the large scale WaterHub offerings complement H2O Innovation’s existing mobile water treatment systems offered under short- and long-term leases: The FlexBox™ line, which is comprised of containerized ultrafiltration (UF) or reverse osmosis (RO) systems designed for drinking water treatment, industrial wastewater, and water reuse, as well as the SILO™ system, which employs membrane bioreactor (MBR) technology.
H2O Innovation’s growth, including the acquisition, is being supported via follow-on investment from funds managed by Ember Infrastructure Management, LP (“Ember”), the majority owner of H2O Innovation, as well as existing minority owners, including Caisse de dépôt et placement du Québec (“CDPQ”) and Investissement Québec (“IQ”).
