Evoqua Water Technologies Corp. (NYSE:AQUA) made an announcement, according to which it has entered into an agreement to acquire the assets of STERIS’ renal business operated by Mar Cor Purification and Cantel Medical for $196.3 million. The business is estimated to generate around $180 million in annual sales and adjusted EBITDA of around $27 million.

Analysts at Berenberg Bank estimate the deal to add around 8% and 4% to the company’s 2022 and 2023 total sales, respectively. Once integrated, the analysts expect the company to grow its sales at a double-digit rate over the next two years making it one of the fastest-growing companies in the water technology sector.

Overall, Berenberg Bank thinks this is an excellent bolt-on deal for Evoqua Water Technologies, which adds meaningfully to the company’s financials at a very accretive valuation.