Xylem Buys Australia's MultiTrode for $26 Million

Watch stocks you care about

The single, easiest way to keep track of all the stocks that matter...

Your own personalized stock watchlist!

It's a 100% FREE Motley Fool service...

Click Here Now

On Friday, water management technology company Xylem (NYSE: XYL  ) announced that it has acquired privately held Australian water and wastewater tech and services firm MultiTrode for approximately $26 million.

Explaining the purchase, Xylem President and Chief Executive Officer Gretchen McClain noted that "an essential part of Xylem's growth strategy is to acquire companies that complement our own technology and geographic presence." The MultiTrode purchase facilitates both these goals, first by expanding Xylem's presence in Australia and adding technology for "reducing energy consumption, call-outs, failures, and overflows."

Financially, MultiTrode recorded $13 million in sales in fiscal 2012, resulting in a price-to-sale valuation of about 2 on the purchase, significantly higher than the 1.3-times-sale valuation that Xylem's own shares carry. Unsurprisingly, then, Xylem's shares sat out Friday's stock market rally, closing down a small fraction of a percent at $27.49.

Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2289499, ~/Articles/ArticleHandler.aspx, 9/28/2016 10:42:55 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated Moments ago Sponsored by:
DOW 18,237.62 9.32 0.05%
S&P 500 2,160.37 0.44 0.02%
NASD 5,306.45 0.74 0.01%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

9/28/2016 10:26 AM
XYL $52.31 Up +0.21 +0.40%
Xylem CAPS Rating: *****