Water Industry Deals and News – December 2017
January 26, 2018
The O’Melveny Monthly Water Report includes select transactions and other items of interest occurring during December 2017. Please contact any member of the O’Melveny Water Practice for additional information on any of these items or any related items.
Overview
The tracked deal volume for December 2017 included investments in water treatment, desalinization, and supply companies in China, Australia, the Philippines, the United Kingdom, and the United States. Other activities included a US-based oil company selling water disposal wells to finance exploration and venture financing of an Italian hydroponics technology company. Acquisitions were tracked for consumer-facing water retail companies in Japan and New Zealand, as well as a specialized concrete treatment company in the US.
Mergers & Acquisitions
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Bayannur Jinshengyuan Water Supply and Drainage Company Limited
Bayannur Jinshengyuan Water Supply and Drainage Company Limited December 8, 2017 Tianjin Capital Environmental Protection Group Company Limited (SHSE:600874) entered into an equity transfer agreement to acquire a 70% stake in Bayannur Jinshengyuan Water Supply and Drainage Company Limited from Bayannur Hetao Water Group Company Limited for approximately $121 million. Bayannur Jinshengyuan Water Supply provides water supply and sewage treatment services in China. Based in Tianjin China, Tianjin Capital Environmental Protection Group operates sewage water treatment facilities and supplies tap water and recycled water, as well as energy heating and cooling services. |
Odle, Inc. December 11, 2017 SUEZ Water Resources Inc. acquired Odle, Inc. for an undisclosed amount. Odle is an Indiana-based, full-service painting and coatings contractor, specializing in large, commercial, municipal, and industrial projects, including restoration of water and wastewater facilities, protection of concrete floors, and tank and secondary containment coatings/linings. SUEZ Water Resources, based in Harrington Park, New Jersey, is a subsidiary of Suez SA and operates in the ownership and operation of water and wastewater utilities throughout the US. |
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Josab International AB December 14, 2017 An undisclosed buyer entered into an agreement to acquire a 26.05% stake in Josab International AB (XSAT:JOSA) from Heilongjiang Interchina Watertreatment Co., Ltd. (SHSE:600187) for $7.6 million. Josab International, based in Stockholm, Sweden, constructs water treatment plants in Europe, India, and China. Its water treatment plants include residential, agricultural, and aquaculture applications, as well as drinking and wastewater purification. Based in Beijing, China, Heilongjiang Interchina constructs and operates water supply and wastewater treatment projects in China. The company is involved in the supply of water and the provision of sewage and wastewater treatment services. |
Kohno Water Corporation Kohno Water Corporation December 14, 2017 Japanet Holdings Co, Ltd. agreed to acquire an unknown minority stake in Kohno Water Corporation from Kohno Co., Ltd. Kohno Water manufactures and sells mineral water and is based in Yokohama-shi, Japan. Japanet Holdings offers management strategy consulting services and is headquartered in Sasebo-shi, Japan. |
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Victorian Desalination Project
Victorian Desalination Project December 14, 2017 AMP Capital Community Infrastructure Fund, managed by AMP Capital Investors Limited, acquired an additional 4.55% stake in the Victorian Desalination Project from SUEZ Water & Treatment Solutions Pty Ltd. AMP now holds a 9.75% stake in the project. The Victorian Desalination Plant, based near Wonthaggi, Australia, provides a rainfall-independent source of drinking water to Melbourne and some regional communities, and is one of the largest public-private partnership projects, with 22 years remaining of the concession. AMP invests in high-yield, brownfield, social infrastructure PPP assets in Australia and New Zealand in sectors such as education, health, justice, defense, community housing, recreational facilities, and transport. |
December 19, 2017 Udenna Development Corporation agreed to acquire Philippine H2O Ventures Corp. (PSE:H2O) from a group of shareholders for approximately $6.4 million. Based in Davao City, the Philippines, Udenna provides real estate development services. Philippine H2O owns, operates, and manages the waterworks system of Calapan City, Oriental Mindoro, serving 12,648 household connections and 736 commercial connections. |
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December 21, 2017 Just Water International Limited (NZSE:JWI) agreed to acquire 51% stake in HomeTech Ltd. New Zealand-based, HomeTech designs and manufactures home improvement products such as solar tubes, roof windows, attic stairs, ventilation, infrared heating, and skylights. Just Water supplies water-coolers, drinking water, and filters for residential and commercial customers in New Zealand. |
Salmon Valley Water Company and Falls Water Company
Salmon Valley Water Company and Falls Water Company December 21, 2017 Northwest Natural Gas Company (NYSE:NWN) entered into an agreement to acquire Salmon Valley Water Company and Falls Water Company. Salmon Valley Water Company provides water utility and treatment services. Falls Water Co., Inc. provides municipal water supply service. Northwest Natural Gas Company distributes natural gas to customers in western Oregon, as well as in portions of Washington. The transactions are subject to certain conditions, including approvals by the Public Utility Commission of Oregon and the Idaho Public Utilities Commission, and are expected to close in 2018. |
Public & Private Financings
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Defined By Water LLC
December 4, 2017 Defined By Water LLC announced that it will raise $1,175,000 in a round of funding. The company will issue membership units pursuant to an exemption provided under Regulation D of the Securities Act. |
Sfera WaterFood December 11, 2017 Sfera WaterFood announced that it has received $612,000 in a round of funding from Club degli Investitori. Based in Grosseto, Italy, Sfera WaterFood develops hydroponic vegetable production technologies. Club degli Investitori is a venture capital firm specializing in Italian startup investments, based in Torino, Italy. |
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PetroQuest Energy, LLC December 15, 2017 An unknown buyer entered into an agreement to acquire certain water disposal assets located in Panola County, Texas, owned by PetroQuest Energy, LLC for $8.8 million. PetroQuest, based in Lafayette, Louisiana, acquires and explores oil and natural gas properties in the Gulf Coast basin and offshore Gulf of Mexico. The sale proceeds will be used by PetroQuest to fund leasehold acquisitions in the Austin Chalk formation in Texas and Louisiana. |
Guardian Water Treatment Limited December 21, 2017 Marlowe plc (AIM:MRL) acquired Guardian Water Treatment Limited and GPCS Limited for $4.6 million. Guardian, headquartered in Basildon, Essex, provides water and air hygiene solutions to over 400 customers. Marlowe acquires and develops fire protection, security systems, water treatment, and air hygiene services in the United Kingdom. |
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New Concepts Holdings Limited (SEHK:2221) December 21, 2017 New Concepts Holdings Limited (SEHK:2221) issued shares in a public offering with gross proceeds estimated at $5.67 million. Per Henrik Melinder will be subscribing to 7,500,000 shares and Beijing Huizhi TD Technology Co., Ltd. will be subscribing to 4,464,000 shares pursuant to the offering. New Concepts intends to use the net proceeds from the offer for general working capital for the operation and development of the kitchen waste and water treatment business. Per Henrik Melinder is a citizen of Sweden and is a senior corporate consultant of New Concepts. |
Water Resources Group Limited (ASX:WRG) December 22, 2017 Water Resources Group Limited (ASX:WRG) announced a private placement of 3,500,000 shares for gross proceeds of $561,000. Water Resources Group is an Australia-based company focused on water treatment solutions within Australia, specifically using ozone within a water treatment facility. |
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Saigon Water Supply Company Limited November 14, 2017 Saigon Water Supply Company Limited is selling 9,000,000 shares by auction in International Square Trading Service Joint Stock Company. Saigon Water Supply expects to raise at least $9.3 million through the offering. |