Private equity investor KKR announced today the acquisition of Environmental Dynamics International, Inc. (EDI) by a strategic platform established last year by KKR and XPV Water Partners, focused on water nutrient management solutions. EDI is a leading global manufacturer of diffused aeration systems, specializing in the research, development and application of advanced technology aeration and biological treatment solutions for municipal and industrial wastewater.
KKR and XPV formed the platform in December 2019, with the goal of creating the leading provider of end-to-end nutrient management solutions for municipal and industrial wastewater treatment facilities. The platform was established with the acquisitions of two providers of nutrient management technologies, Environmental Operating Solutions (EOSi) and Nexom. The platform seeks to address the growing challenge of nutrient pollution, one of the main environmental problems facing the world, and a significant threat to human health.
The acquisition of EDI will accelerate the growth of the platform’s nutrient management business. EDI will be combined with Nexom, given the complimentary fit between EDI’s expertise in serving medium- to large-scale treatment facilities, and Nexom’s focus on serving small- to medium-sized treatment facilities.
KKR stated that the acquisition is part of the firm’s Global Impact strategy, through which KKR identifies and invests in companies whose core business models provide commercial solutions that contribute measurable progress toward one or more of the United Nations Sustainable Development Goals (SDGs). Specifically, the transaction and the platform apply to UN SDG #6, ensuring the availability and sustainable management of clean water. KKR launched Global Impact in 2018, and earlier this year announced the final closing of its $1.3 billion Global Impact Fund.
Commenting on today’s acquisition, and the growth of the platform, Robert Antablin of KKR Global Impact and David Henderson of XPV Water Partners said:
“We are committed to scaling solutions to promote water quality and we look forward to collaborating with EDI’s management team and dedicated employees to deliver our resources, ideas and capital to unlock additional growth. Our ambition is for this acquisition to be the first of many as we expand our platform by teaming up with leading entrepreneurs, technologies and businesses across the sector.”
Martin Hildebrand, CEO of Nexom, commented, “adding EDI to our platform is an incredible strategic fit. I look forward to working closely with the employees of EDI to grow the combined business.”
EDI’s founder and CEO, Chuck Tharp will transition to an advisor role as part of the transaction. Tharp added:
“In addition to being a great cultural fit for EDI, KKR and XPV’s water quality platform brings significant resources, expertise and passion to fuel our collective growth.”