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Water Industry Deals and News – July 2017

August 18, 2017

The Monthly O’Melveny Water Report includes select transactions and other items of interest occurring during July 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 July, the tracked deal volume was dominated by a few players, including Evoqua Water Technologies LLC, Kemble Water Holdings Limited, and Beijing Capital Co., Ltd. UK-based Kemble and China-based Beijing Capital engaged in private financing transactions in support of water treatment and provision services, while Pennsylvania-based Evoqua continued its run of acquisitions. Water systems management software was also featured in the amalgamation of several software companies with Aquatics Information Inc.

Mergers & Acquisitions




Evoqua Water Technologies LLC              

July 5, 2017

Evoqua Water Technologies LLC acquired ADI Systems, Inc., Lange Containment, Inc. and Geomembrane Technologies, Inc. from ADI Group Inc. ADI Systems develops, produces, and sells biological treatment technologies for industrial wastewater management and renewable energy generation. Lange Containment Systems and Geomembrane Technologies manufacture geomembrane products and liners for applications including ponds, floating covers, tank liners, brine evaporation ponds, aquatic habitats, and waste water treatment facilities.

 


Evoqua Water Technologies LLC

July 6, 2017

Evoqua Water Technologies LLC also acquired Olson Irrigation Systems, a designer and producer of filters and irrigation components for the agriculture and industrial markets, based in Santee, California. As part of the transaction, Olson Irrigation will become a part of Evoqua’s Aquatics and Disinfection (A&D) division.

Aquatic Informatics Inc.

July 11, 2017

Aquatic Informatics Inc. announced a successful amalgamation with WaterTrax and Linko Technology for an undisclosed amount. Aquatic Informatics provides software solutions for water data management and analysis for the environmental monitoring industry. WaterTrax is a software provider that helps water agencies and utilities monitor and manage their water and wastewater system data. Linko Technology is a supplier of industrial pretreatment and fats, oil and grease and liquid hauled haste software to municipal agencies across North America. XPV Water Partners, a private equity and venture capital firm seeking investments in water, among others, acquired a majority stake in Aquatic Informatics.

 


Jiangxi Shunda Construction Engineering Limited

Jiangxi Shunda Construction Engineering Limited

July 24, 2017

Jiangxi Shunda Construction Engineering Limited, a subsidiary of Yingtan Water Supply Co., Ltd. and specializing in the installation of water supply facilities in China, entered into an acquisition agreement to acquire the remaining 49% stake in Yingtan Xiang Rui from Zhou Ping Hua for $4.9 million. Yingtan Xiang Rui develops, constructs, and sells real estate properties. Upon completion, Yingtan Xiang Rui will become a wholly-owned subsidiary of Jiangxi Shunda Construction Engineering Limited.


Public & Private Financings



Beijing Capital Co. 

July 13, 2017

Water and Wastewater Services, Pingshan Capital Water Co., Ltd announced a private placement of shares for gross proceeds of $3.7 million. The transaction will include participation from Beijing Capital Co., Ltd (SHSE:600008) as well as Pingshan County Yijiang Water Development Co., Ltd.

 


Beijing Capital Co.

July 14, 2017

Water and Wastewater Services Tancheng Capital Water Co., Ltd announced a private placement of shares of gross proceeds of $1.4 million with returning investor Beijing Capital Co., Ltd (SHSE:600008). Beijing Capital engages in the water supply, solid waste treatment, and environmental remediation businesses in China, New Zealand, and Singapore.

Affinity Water Limited

July 24, 2017

A small group of co-investors acquired 3.4% stake in Affinity Water Limited from HICL Infrastructure Company Limited (LSE:HICL) for $32.1 million. Affinity Water, based in Hatfield, United Kingdom, owns and manages water assets and network in an area of approximately 4,500 square kilometers in the UK. The company serves approximately 3.6 million people in1.5 million properties. HICL Infrastructure specializes in direct and fund of funds investments and seeks to invest in infrastructure projects. Following the transaction, HICL Infrastructure Company Limited will hold a 33.2% stake. 

 


Kemble Water Holdings Limited

Kemble Water Holdings Limited

July 24, 2017 

The Toronto-based OPSEU Pension Trust agreed to acquire 10.94% stake in Kemble Water Holdings Limited from Qsuper Limited, The OPSEU Pension Trust and Alberta Investment Management Corporation. Kemble, through its subsidiaries, provides regulated water and wastewater services, including wastewater treatment and drinking water distribution services in the United Kingdom. Thames Water, Kemble’s largest subsidiary, is the UK's largest water and wastewater services provider, serving 15 million customers across London, the Thames Valley, and surrounding areas. The transaction is expected to close later in the year.


Kemble Water Holdings Limited

Kemble Water Holdings Limited            

July 26, 2017

Borealis Infrastructure Trust, a Toronto-based asset management firm specializing in infrastructure projects, agreed to acquire an additional 5.5% stake in Kemble Water Holdings Limited from AMP Capital Investors Limited. Following the deal, OMERS Private Equity will increase its overall interest in Kemble Water Holdings to 23%. The transaction is expected to close later in the year.

 



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