Water Industry Deals and News – June 2017

July 20, 2017

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


In June, 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, Israel, Malaysia, Taiwan, Thailand and Singapore.  Deal activity concentrated around manufacturers and construction enterprises involved in water, as well as industrial water treatment and reclaimed water in oil production.

Mergers & Acquisitions

HD Supply Waterworks Group, Inc.

June 4, 2017

Clayton, Dubilier & Rice, Inc., a private equity firm, entered into a purchase agreement to acquire HD Supply Waterworks Group, Inc., HD Supply Waterworks, Ltd. and certain other waterworks business assets from HD Supply Holdings LLC, HD Supply GP & Management, Inc. and HD Supply, Inc. for $2.5 billion in cash. HD Supply is based in Atlanta, Georgia, and distributes products throughout the United States used in building, repairing, and maintaining water and wastewater systems, as well as fire protection. The $2.5 billion proceeds from the sale will be used to pay an estimated $40 million of transaction costs, an estimated $18 million of taxes, as well as bonds and term loans.


United Waste Water Services, Inc. 

United Waste Water Services, Inc.

June 6, 2017

Wind Point Partners, a private equity firm, acquired United Waste Water Services, Inc. for an undisclosed amount. As part of the transaction, Wind Point acquired all of United’s wastewater and oil processing assets as well as ownership of the Valicor brand. United Waste Water provides waste treatment services primarily in Ohio, Kentucky, Indiana, Tennessee, Alabama, North Carolina, and West Virginia. The company processes and recycles a range of non-hazardous industrial and other wastes that includes waste water, ink and paint, and used oils, among others.

Water Intelligence plc

June 7, 2017

Water Intelligence plc (AIM:WATR) announced the acquisition of its Indianapolis, Indiana franchise with 2016 revenues of approximately $480,000. The current franchise owner will be staying on. Water Intelligence provides leak detection and remediation products and services for residential, commercial, and municipal customers in the United States, the United Kingdom, and internationally.

Star Pumped Storage Ltd.

Star Pumped Storage Ltd.

June 7, 2017

Hydroelectricity Noy Infrastructure Fund, a fund of Poalim Ventures Ltd. and Clal Insurance Enterprises Holdings Ltd. entered into an agreement to acquire a 19.84% stake in Star Pumped Storage Ltd. from Water Planning for Israel Ltd. for $10.9 million. The acquisition of the remaining 20.66% stake is conditional upon the fulfillment of this transaction. Star Pumped holds a license to build and operate a 340 MW power plant in Kochav Hayarden, Israel, based on the pumped storage technology, pushing stored water through turbines to generate electricity.


Premier Water Services Sdn Bhd          

June 9, 2017

An unknown buyer offered to acquire a 60% stake in Premier Water Services Sdn Bhd from Ranhill Holdings Berhad (KLSE:RANHILL) for $337 million. Based in Shah Alam, Malaysia, Premier Water distributes water pressure management and monitoring equipment used to reduce non-revenue water for utilities.


H2O Midstream, LLC

June 14, 2017    

H2O Midstream, LLC acquired produced water infrastructure assets from Encana Oil & Gas (USA) Inc. for an undisclosed amount. H2O Midstream will gather, dispose of and deliver for re-use produced water to Encana’s facility in Howard County, Texas. H2O Midstream will assume ownership and operation of Encana’s existing produced water gathering system consisting of over 100 miles of interconnected pipeline and five salt water disposal wells totaling 80,000 barrels per day of disposal capacity.

Darco Remediation Technologies Inc Darco Youli Co., Ltd and Kokuto Kaku

June 16, 2017

Hsu Chin-Kou, Director of Darco Youli Co., Ltd and Kokuto Kaku agreed to acquire the remaining 60% stake in Darco Water Technologies, a water treatment firm, from Darco Remediation Technologies Inc. for $1.9 million. The capital infusion is intended to strengthen Darco’s position in the Taiwan market as its competitor expands in the medical disposal sector. Darco Water designs and installs water systems for industrial applications and has operations in Singapore, Malaysia, China, Taiwan, Philippines and Indonesia.


Zhaoqing Lubu Tongji Water Co., Ltd.

Zhaoqing Lubu Tongji Water Co., Ltd.

June 22, 2017

Huizhou Tongji Environmental Technology Co., Ltd. agreed to acquire 30% stake in Zhaoqing Lubu Tongji Water Co., Ltd. from Zhaoqing Yongjia Water Co., Ltd. for $442,000. In related transactions, Huizhou Tongji Environmental Technology Co., Ltd. agreed to acquire 30% stake each in Zhaoqing Tongji Water Co., Ltd., Zhaoqing Jindu Tongji Water Co., Ltd. and Sihui Tongji Water Co., Ltd. from Zhaoqing Yongjia Water Co., Ltd. Huizhou Tongji, a subsidiary of Shanghai Tongji Science & Technology Industrial Co., Ltd. provides sewage treatment and water recycling services. Based in Zhaoqqing, China, Zhaoqing Lubu invests in and manages sewage and environmental protection projects.

Forterra, Inc.

June 26, 2017

Thompson Pipe Group Inc. entered into a definitive agreement to acquire U.S. concrete and steel pressure pipe assets of the water pipe and products business segment from Forterra, Inc. (NasdaqGS:FRTA) for $23.2 million. Under the terms of the agreement, an affiliate of Thompson Pipe Group will acquire assets related to five Forterra manufacturing facilities and a fittings facility. Based in Irving, Texas, Forterra manufactures water and drainage pipe and products in the United States and Eastern Canada. Thompson manufactures and distributes reinforced concrete pipe and steel reinforced polymer concrete manholes and manhole components.


Jiangsu Flowers King Horticulture Co., Ltd.

Jiangsu Flowers King Horticulture Co., Ltd.

June 29, 2017

Jiangsu Flowers King Horticulture Co., Ltd. (SHSE:603007) signed an agreement to acquire 29.08% Stake in Zhengzhou Water Conservancy Construction Project Co., Ltd. from Yu Chunyan, Zhang Xuewei, Song Jian, Xu Tian, Feng Xinglong and Wang Xia. Zhengzhou Water Conservancy, operates primarily in Chan’s Henan province and is engaged in water conservation and hydropower project management as well as prefabricated construction. Jiangsu Flowers will acquire the stake for $36.8 million in cash, funded through self-financed funds. Jiangsu Flowers is a landscaping design and construction company based in Danyang, China.

Public & Private Financings

Tritech Group Limited

June 5, 2017

Wang Liang will subscribe for 28,803,000 shares of Tritech Group Limited (Catalist: 5G9). The shares will commence trading on Catalist Market of Singapore Stock Exchange. Based in Singapore, Tritech currently has operations in China, Malaysia, Philippines and Vietnam. Tritech, through its subsidiaries, provides engineering services focused on environmental protection and water.


Bright Blue Water Corporation Limited

June 27, 2017

Bright Blue Water Corporation Limited announced that it will receive $35,000 in equity funding. Former parent organization Eason Paint Public Company Limited (SET:EASON), will invest THB 60 million to retain its 5% stake. Bright Blue Water sells, rents, and services water purifiers, ozone generators, filters and parts in Thailand. The company also provides drinking water management, and maintenance and replacement for filters. Eason Paint manufactures and distributes automotive and industrial paints domestically and internationally.

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