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Water Industry Deals and News – August 2017

October 4, 2017

The Monthly O’Melveny Water Report includes select transactions and other items of interest occurring during August 2017.  Please contact any member of the O’Melveny Water Practice for additional information on any of these items or any related items.  

Overview

In August, the tracked deal volume concentrated heavily in acquisitions, and ranged from the very large to the very small. These deals were tracked in China, the United States, Canada, Japan, and the Philippines. Deal activity concentrated around water supply and water utility sectors, as well as produced water operations associated with oil production. A few private and public financings were also tracked in North America and Europe.

Mergers & Acquisitions



Tallgrass Energy Partners, LP              

August 2, 2017

Tallgrass Energy Partners, LP (NYSE:TEP) acquired Clarkelen water disposal facility in Powder River Basin subsequent. Tallgrass Energy Partners LP owns, operates, and develops midstream energy assets in North America and provides natural gas transportation and storage services for customers in the Rocky Mountains and Midwest regions of the United States through its Tallgrass Interstate Gas transportation system.

 

Quench USA, Inc.

August 2, 2017

Quench USA, Inc. acquired substantially all of the assets of Quench Water Canada, Inc. This acquisition establishes a presence in Canada and is expected to be used as a platform for further expansion. Quench USA, Inc., headquartered outside of Philadelphia, offers “water-as-a-service” solutions by providing filtered water systems, including bottleless water coolers, ice machines, sparkling water dispensers, and coffee brewers, to customers across the United States. Quench is an independent operating company of AquaVenture Holdings.

Aboitiz InfraCapital, Inc.

August 3, 2017

Aboitiz InfraCapital, Inc. acquired aN 11.14% stake in Balibago Waterworks System, Inc. (BWSI) from San Fernando Electric Light & Power Company, Inc. for approximately $5.4 million. BWSI is recognized by the National Water Resources Board as the largest province-based privately owned waterworks systems nationwide. It services running water to more than 150,000 households in over 50 water distribution areas in the country. Aboitiz InfraCapital, Inc. is the investment vehicle for all infrastructure related investments of the Aboitiz Group.

 


Keystone Clearwater Services

August 8, 2017

Keystone Clearwater Services acquired OH Waterline and related assets in Salineville from Rex Energy Corporation (NasdaqCM:REXX) for approximately $8 million. Keystone Clearwater provides customized water management solutions, including water transfer services, water and wastewater pipeline construction, and produced water management to shale oil & gas, municipal, and industrial customers throughout the Eastern United States.

 

Eagle Creek Renewable Energy, LLC

August 8, 2017

Eagle Creek Renewable Energy, LLC acquired a minority stake in the 4-MW Brassua facility near the village of Rockwood, Maine and a majority stake in the Kennebec Water Power Company. New Jersey-based Eagle Creek Renewable Energy is an owner, operator and developer of hydroelectric power projects. It currently owns and operates 63 hydroelectric facilities representing 210 megawatts of capacity across the United States.

   

Goodnight Midstream, LLC

August 9, 2017

Goodnight Midstream, LLC acquired Wyatt Water Solutions, LLC. The acquisition is financed by Goodnight's credit facility, operating cash flows and equity investments from Tailwater Capital, LLC. Goodnight Midstream owns and operates an extensive network of water gathering pipelines and salt water disposal wells focused on gathering and disposing of produced saltwater. Wyatt Water Solutions, LLC provides water gathering and disposal system services to oil and gas producers. It will operate as a wholly owned subsidiary of Goodnight Midstream after the transaction and will begin operations in Atascosa County, Texas.

      

Algonquin Power & Utilities Corp.

August 10, 2017

Algonquin Power & Utilities Corp. (TSX:AQN) agreed to acquire two water distribution systems. Algonquin is a renewable energy and regulated utility company with assets across North America. It actively invests in hydroelectric, wind and solar power facilities, sustainable utility businesses (water, electricity), and non-sustainable utility businesses (natural gas) through its two operating subsidiaries, Algonquin Power Company and Liberty Utilities.


   

Macroasia Properties Development Corporation

August 11, 2017

Macroasia Properties Development Corporation acquired Naic Water Supply Corporation. Based in the Philippines, Macroasia has been operating a waste water treatment and a water recycling facility for non-domestic water supply within a special economic zone since 2011 and has pursued water resources development projects in areas outside Metro Manila. Naic is a Philippine-based company with an objective to acquire, build, own, install, improve, expand, maintain and operate the water supply and distribution system within the Municipality of Naic.

 



Bakken Water Transfer Services, Inc. (OTCPK:BWTX)

Bakken Water Transfer Services, Inc. (OTCPK:BWTX)

August 22, 2017

Bakken Water Transfer Services, Inc. (OTCPK:BWTX) acquired Dakota Energy Resources Corporation from Geopulse Explorations Inc. (OTCPK:GPLS). Bakken Water Transfer Services, Inc. provides water and other services in the oil field services industry. Dakota Energy Resources Corporation provides oilfield services, including oil field fluid transportation, fluid transfers, oil field chemical distribution and transportation, fresh water sales and transportation, water pipeline set up, maintenance, and relocation services.

   


WaterBridge Resources, LLC

August 22, 2017

WaterBridge Resources, LLC acquired EnWater Solutions, LLC. WaterBridge Resources, LLC, a Houston-based company, provides midstream services, offering produced and flowback water services for clients in basins across the United States. It engages in acquiring, operating, and monetizing non-core salt water disposal infrastructure from exploration and production companies. EnWater Solutions, LLC provides multi-service water management solutions to oil and gas operators in the Permian Basin, and is based in Midland, Texas.

 

Chongqing Haoyang Water Construction Management Co., Ltd.

Chongqing Haoyang Water Construction Management Co., Ltd.

August 28, 2017

Chongqing Haoyang Water Construction Management Co., Ltd. agreed to acquire Chongqing Qianjiang Drainage Co., Ltd. from Chongqing Water Asset Management Co., Ltd. for $10.9 million. The transaction was approved by the Chongqing Water Group, parent of Chongqing Haoyang Water Construction Management Co., Ltd.
 
Longjiang Environmental Protection Group Co., Ltd


Longjiang Environmental Protection Group Co., Ltd

August 28, 2017

Longjiang Environmental Protection Group Co., Ltd acquired Jiaohe Jiaxin Water Co., Ltd. for $14.4 million. Upon completion, Jiaohe Jiaxin Water will become a wholly-owned subsidiary of Longjiang Environmental Protection Group. Chongqing Water Group is a China-based company, principally engaged in the investment, operation, construction and management of urban water supply and drainage projects. Jiaohe Jiaxin Water manufactures water purification equipment and produces water treatment systems equipment, water environmental protection equipment, and other equipment. Jiaohe Jiaxin Water also operates sewage treatment technology development, electrical equipment installation, and other businesses.


Public & Private Financings



American Water Works Company, Inc.

August 4, 2017

American Water Works Company, Inc. (NYSE: AWK) is registering 2,000,000 common stock which may be offered or sold pursuant to the 2017 Nonqualified Employee Stock Purchase Plan. American Water Works Company, Inc. is a holding company for regulated and market-based subsidiaries throughout the United States and Ontario, Canada. The Company's Regulated Businesses segment provides water and wastewater services as public utilities in 16 states in the United States.

 

Guangxi Nanning Waterworks Co., Ltd. (SHSE:601368)

Guangxi Nanning Waterworks Co., Ltd. (SHSE:601368)

August 7, 2017

Guangxi Nanning Waterworks Co., Ltd. (SHSE:601368) announced a private placement of up to 147,162,179 A shares at $1.64 per share for gross proceeds of up to $243.3 million. The transaction will include participation from up 10 specific investors including returning investor Nanning Jianning Water Investment Group Co., Ltd. with which the company signed a conditional share subscription agreement for a minimum subscription of 22,688,100 shares. Based in China, Guangxi Nanning Waterworks produces and sells water in China. It is also involved in sewage treatment activities and the construction and operation of drainage facilities.

TAPP Water

August 23, 2017

TAPP Water announced that it has received $356,000 in a first round of funding. The transaction included participation from investors in the United Kingdom, Canada, Denmark and Spain. TAPP water sells TAPP 1, a water filter initially produced for Europe and North America that provides clean and fresh water directly from the tap in a sustainable way.

 



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Eagle Creek Renewable Energy, LLC

August 8, 2017

Eagle Creek Renewable Energy, LLC acquired a minority stake in the 4-MW Brassua facility near the village of Rockwood, Maine and a majority stake in the Kennebec Water Power Company. New Jersey-based Eagle Creek Renewable Energy is an owner, operator and developer of hydroelectric power projects. It currently owns and operates 63 hydroelectric facilities representing 210 megawatts of capacity across the United States.

Eagle Creek Renewable Energy, LLC

August 8, 2017

Eagle Creek Renewable Energy, LLC acquired a minority stake in the 4-MW Brassua facility near the village of Rockwood, Maine and a majority stake in the Kennebec Water Power Company. New Jersey-based Eagle Creek Renewable Energy is an owner, operator and developer of hydroelectric power projects. It currently owns and operates 63 hydroelectric facilities representing 210 megawatts of capacity across the United States.

Bakken Water Transfer Services, Inc. (OTCPK:BWTX)

August 22, 2017

Bakken Water Transfer Services, Inc. (OTCPK:BWTX) acquired Dakota Energy Resources Corporation from Geopulse Explorations Inc. (OTCPK:GPLS). Bakken Water Transfer Services, Inc. provides water and other services in the oil field services industry. Dakota Energy Resources Corporation provides oilfield services, including oil field fluid transportation, fluid transfers, oil field chemical distribution and transportation, fresh water sales and transportation, water pipeline set up, maintenance, and relocation services.

Bakken Water Transfer Services, Inc. (OTCPK:BWTX)

August 22, 2017

Bakken Water Transfer Services, Inc. (OTCPK:BWTX) acquired Dakota Energy Resources Corporation from Geopulse Explorations Inc. (OTCPK:GPLS). Bakken Water Transfer Services, Inc. provides water and other services in the oil field services industry. Dakota Energy Resources Corporation provides oilfield services, including oil field fluid transportation, fluid transfers, oil field chemical distribution and transportation, fresh water sales and transportation, water pipeline set up, maintenance, and relocation services.