Hawkins’ Strategic Acquisition of StillWaters Technology and Its Implications for Water Treatment Growth

Hawkins, Inc.’s acquisition of StillWaters Technology in August 2025 for $400 million marks a pivotal step in its strategy to dominate the water treatment sector through tuck-in acquisitions. This move, funded via a $400 million credit facility while maintaining a conservative leverage ratio of 1.7x EBITDA [1], aligns with the company’s broader vision of building an end-to-end water treatment platform. By integrating StillWaters’ established distribution networks and community ties in Alabama, Hawkins has expanded its southern U.S. footprint and enhanced cross-selling opportunities with its existing portfolio of water treatment chemicals and advanced filtration technologies [2].

The long-term value of tuck-in acquisitions in the water treatment sector is underscored by Hawkins’ disciplined approach. Over five years, the company has completed 13 such acquisitions, including WaterSurplus in April 2025, which added patented NanoStack™ and ImpactRO™ technologies for PFAS removal [3]. These transactions have not only diversified Hawkins’ offerings but also created cost synergies of 10–15% through shared logistics and purchasing efficiencies [4]. The water treatment industry, projected to grow at a 7.02% CAGR through 2033 [5], is increasingly favoring smaller, technology-driven deals over large-scale mergers, particularly in a high-interest-rate environment. This trend allows firms like Hawkins to scale incrementally while mitigating integration risks.

The strategic rationale for tuck-in acquisitions extends beyond geographic expansion. StillWaters’ local expertise in Alabama complements Hawkins’ national infrastructure, enabling the company to address regulatory demands and infrastructure modernization needs more effectively [6]. For instance, the integration of StillWaters has preserved its community-driven relationships, a critical factor in maintaining customer loyalty in a sector where trust and reliability are paramount [7]. Similarly, the acquisition of WaterSurplus brought access to Fortune 500 clients, accelerating Hawkins’ revenue growth trajectory and positioning its Water Treatment segment to exceed $500 million by fiscal 2026 [8].

However, the long-term success of tuck-in strategies hinges on execution. Hawkins’ ability to integrate StillWaters and WaterSurplus without disrupting operations or overleveraging its balance sheet demonstrates its operational discipline. The company’s leverage ratio post-acquisition remains within a manageable range, and its focus on technology-driven deals ensures alignment with market trends such as AI-enabled smart metering and decentralized treatment systems [9]. These innovations are expected to drive demand in wastewater treatment, a segment where 50% of U.S. water sector transactions in Q4 2024 involved wastewater assets [10].

For investors, Hawkins’ approach highlights the structural tailwinds in the water treatment sector. With aging infrastructure, stringent environmental regulations, and a global market projected to reach $639.30 billion by 2033 [11], tuck-in acquisitions offer a scalable path to capitalize on these opportunities. The company’s track record of integrating smaller firms into its ecosystem—while preserving their unique strengths—positions it to outperform peers in a consolidating industry.

Source:
[1] Hawkins, Inc.'s Strategic Acquisition of StillWaters Technology [https://www.ainvest.com/news/hawkins-strategic-acquisition-stillwaters-technology-implications-long-term-water-treatment-market-dominance-2508/]
[2] Hawkins Acquires StillWaters To Expand Water Treatment Business In Alabama [https://www.nasdaq.com/articles/hawkins-acquires-stillwaters-expand-water-treatment-business-alabama]
[3] Hawkins, Inc. Expands Water Treatment Offerings [https://www.stocktitan.net/news/HWKN/hawkins-inc-expands-water-treatment-offerings-with-complementary-dsa5n00yjld6.html]
[4] Hawkins' Strategic Play in Water Treatment: A Path to $500M by 2026 [https://www.ainvest.com/news/hawkins-strategic-play-water-treatment-path-500m-2026-2504]
[5] Water and Wastewater Treatment Market Size & Forecast 2025-2033 [https://www.renub.com/water-and-wastewater-treatment-market-p.php]
[6] Hawkins, Inc. Completes Acquisition of StillWaters Technology, Inc. [https://www.quiverquant.com/news/Hawkins%2C+Inc.+Completes+Acquisition+of+StillWaters+Technology%2C+Inc.+to+Expand+Southern+U.S.+Water+Treatment+Operations]
[7] Hawkins, Inc. Reports Third Quarter Fiscal 2025 Results [https://www.globenewswire.com/news-release/2025/01/30/3017584/0/en/Hawkins-Inc-Reports-Third-Quarter-Fiscal-2025-Results.html]
[8] Hawkins, Inc. Expands Water Treatment Footprint with Acquisition of StillWaters Technology, Inc. [https://www.globenewswire.com/news-release/2025/08/29/3141481/0/en/Hawkins-Inc-Expands-Water-Treatment-Footprint-with-Acquisition-of-StillWaters-Technology-Inc.html]
[9] Global Mergers and Acquisitions in the Water Treatment Sector [https://mandaequilibrium.com/global-mergers-and-acquisitions-in-the-water-treatment-sector/]
[10] Key Trends, M&A Activity, and Market Outlook, Q1 2025 [https://www.bluefieldresearch.com/research/u-s-private-water-key-trends-ma-activity-and-market-outlook-q1-2025/]
[11] Water Treatment Market Size and Forecast 2025 to 2034 [https://www.precedenceresearch.com/water-treatment-market]