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Water Industry Deals and News – March 2017

April 6, 2017 | Water

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

Overview

In March, acquisitions and financings made up all of the tracked deal volume. Public offerings were centered in Asia, while acquisitions were tracked in Australia, China, England, and the United States. The single largest deal, with a value of $3.4 billion, was the sale of General Electric’s water division (GE Water) to Caisse de dépôt et placement du Québec and SUEZ SA.

Mergers & Acquisitions




Artesian Resources Corporation 

February 28, 2017

Artesian Resources Corporation (NasdaqGS:ARTN.A), a provider of water and wastewater services to approximately 300,000 customers in Delaware and the eastern part of Maryland, entered into an agreement to acquire water assets from Fort DuPont Redevelopment and Preservation Corporation. Fort Du Pont consists of a 443-acre complex designated as a National Historic District located along the Delaware River adjacent to Delaware City. The purchase includes a water treatment plant, a storage tank, water mains, and other equipment used to provide potable water and fire suppression.

 

Rangen, Inc. 

March 3, 2017

Idaho Ground Water Appropriators, Inc., an association representing agricultural, industrial and municipal groundwater users in southern Idaho, acquired Rangen, Inc.  Rangen is an agriculture business based in Idaho, specializing in aquaculture, general feed and commodity operations. The acquisition settles a contentious water delivery call by Rangen that could have resulted in curtailment for groundwater users in the area. 


GE Osmonics, Inc.

March 8, 2017

Caisse de dépôt et placement du Québec and SUEZ SA (ENXTPA:SEV) entered into a binding agreement to acquire GE Osmonics, Inc. (GE Water) from General Electric Company (NYSE:GE) for an enterprise value of $3.4 billion. In the all-cash deal, the buyers will pay for the equity and debt of GE Water. Caisse de dépôt will invest over $700 million for a 30% stake and SUEZ will acquire a 70% stake. GE Water designs and manufactures equipment used in the filtration and processing of liquids. The transaction is expected to close by mid-2017. 


Kemble Water Holdings Limited

Kemble Water Holdings Limited 

March 8, 2017 

Fiera Infra LP, a fund managed by Canada-based Fiera Infrastructure Inc., together with Desjardins Financial Corporation Inc. acquired an unknown minority interest in Kemble Water Holdings Limited from SAS Trustee Corp for $150 million. The subsidiaries of Kemble, including Thames Water Utilities Ltd, provide wastewater treatment and drinking water distribution services in southern England.

 

Southern Waterborne Transport Corporation 

March 19, 2017

Krystal Investments Pte Ltd. acquired an additional 16% stake in five companies in Singapore from Southern Waterborne Transport Corporation for $38.2 million. Southern Waterborne is a Vietnam-based company engaged in water transport, port services, waterway design and construction, and real estate.


   

Webster Ltd. 

March 23, 2017

Webster Ltd. (ASX:WBA) agreed to acquire Motspur Park Pty Ltd. for $17.4 million. The purchase includes the Motspur Park orchard, water entitlements and plant and equipment. Webster is a diversified food and agribusiness based in Australia.

Chongqing Kangda Environmental Protection Industry (Group) Co., Ltd.

Chongqing Kangda Environmental Protection Industry (Group) Co., Ltd. 

March 21, 2017       

Chongqing Kangda Environmental Protection Industry (Group) Co., Ltd. entered into an agreement to acquire Shandong Fengmin Water Co., Ltd. from Wang Chuntian for $4.5 million. Chongqing Kangda Environmental develops and operates municipal and environmental infrastructure, such as urban water supply and drainage projects.

   

Public Offerings & Private Financings



Kurita Water Industries Ltd. 

March 1, 2017

Kurita Water Industries Ltd. (TSE:6370), a Japanese manufacturer of water treatment chemicals and facilities, announced a share repurchase program. Under the program, the company will repurchase up to 4,000,000 shares, representing 3.45% of its shares outstanding, up to a total of $90.2 million. 

 

Kunming Dianchi Water Treatment Co., Ltd. 

March 24, 2017 

Kunming Dianchi Water Treatment Co., Ltd. is offering 33,943,000 shares pursuant to a Hong Kong public offering and 305,487,000 shares pursuant to an international offering.  Kunming Dianchi, based in Kunming, China, focuses on the maintenance and management of sewage and drainage facilities. Net proceeds from the offering are estimated to be approximately $156.8 million, with 70% of proceeds intended for capital expenditures in wastewater and water supply projects.


Luzhou Xinglu Water (Group) Co., Ltd. 

March 20, 2017       

China-based Luzhou Xinglu Water (Group) Co., Ltd. is offering 21,494,000 shares under a Hong Kong public offering and 193,446,000 shares under an international offering. Luzhou Xinglu Water expects to raise net proceeds of approximately $53.6 million. The company intends to use approximately 30% of the net proceeds for constructing new tap water supply and wastewater treatment facilities, and approximately 30% to finance the acquisition of tap water supply or wastewater treatment facilities.

 



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