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Water Industry Deals and News – May 2017
June 21, 2017The Monthly O’Melveny Water Report includes select transactions and other items of interest occurring during May 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 May, the tracked deal volume was split between acquisitions and financings. Acquisitions were tracked in the United States, Egypt, Mexico, Asia, and Canada, while financings were centered in Europe, Asia, and the United States. Deal activity concentrated around water and wastewater service providers.
Mergers & Acquisitions
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Cole Engineering Group Ltd. May 2, 2017 Ontario, Canada-based engineering and consulting firm, Cole Engineering Group Ltd. acquired XCG Water Group and XCG Training and Operations, Inc. from XCG Consultants Ltd. for an undisclosed amount. XCG offers specialized municipal infrastructure, wastewater and water resources services and training to clients across Canada. |
LaMotte Water Management LLC May 8, 2017
LaMotte Water Management LLC acquired Clean Streams LLC for an undisclosed amount. LaMotte, operates in the US Mid-Atlantic region and specializes in consulting and servicing water treatment systems for cooling towers and boilers. Clean Streams manufactures automated water treatment systems for evaporative cooling water systems. |
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Modern Waterproofing Company S.A.E. May 8, 2017 Modern Waterproofing Company S.A.E. (CASE:WATP) agreed to acquire the main production line from Spuntex Company for Engineering Textiles for $1.1 million. Modern Waterproofing, an Egypt-based company, manufactures bituminous roofing and waterproofing membranes. |
May 9, 2017 Evoqua Water Technologies LLC signed a definitive agreement to acquire Noble Water Technologies for an undisclosed amount. Evoqua designs, develops, and manufactures water and wastewater treatment products and systems. Noble is a provider of high purity water equipment, systems and service, service deionization and resin regeneration, based in Dallas, TX. |
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TAS Environmental Services LP May 16, 2017 TAS Environmental Services LP acquired Water Kleen Services including all employees. Headquartered in Fort Worth, TX, TAS provides environmental, emergency response, waste transportation and industrial cleaning services. Water Kleen specializes in hydroblasting services. |
L3 Technologies, Inc. May 19, 2017 L3 Technologies, Inc. (NYSE:LLL) acquired Open Water Power, Inc. L3 is a communications systems company headquartered in New York, NY. Open Water will be renamed L3 Open Water Power and will be integrated into L3’s Sensor Systems business segment. |
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 Missouri-American Water Company May 23, 2017 Missouri-American Water Company acquired Wardsville, Missouri water and wastewater systems for $2.8 million. Missouri-American, a water and wastewater utility company, will operate and maintain water and sewer systems previously serviced by the Village of Wardsville. |
 Rheem Manufacturing Company Inc. May 23, 2017 Rheem Manufacturing Company Inc. entered into an agreement to acquire Calentadores de América S.A. de C.V., Fluida, S.A. de C.V. and Water Heating Technologies Corp. from Grupo Industrial Saltillo, S.A.B. de C.V. (BMV:GISSA A) for $217.3 million. Rheem, headquartered in Atlanta, GA, manufactures commercial and residential heating and cooling systems. Grupo Industrial Saltillo is based in Mexico. |
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| Binzhou Haifu Water Industry Co., Ltd. Binzhou Haifu Water Industry Co., Ltd. May 23, 2017 Binzhou Haifu Water Industry Co., Ltd. entered into a framework agreement to acquire Xinnuo Water (Binzhou) Co., Ltd. from Sino Water Pte Ltd. for $1.8 million. |
Global Water Resources, Inc. May 24, 2017 Global Water Resources, Inc. (NasdaqGM:GWRS) acquired Eagletail Water Company. Global Water, a water resource management company, is based in Phoenix, Arizona. The acquisition of Eagletail is part of Global Water’s larger focus on acquiring water utilities. |
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Kukdong Oil & Chemicals Co., Ltd. May 24, 2017 Kukdong Construction Material Company agreed to acquire waterproof membrane business sector from Kukdong Oil & Chemicals Co., Ltd. (KOSE:A014530) for $1.4 million. As part of the deal, the assets, contracts and other rights of the sector will be acquired. |
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Public & Private Financings
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Suining Mingxing Water Supply Co., Ltd. Suining Mingxing Water Supply Co., Ltd. May 11, 2017 Suining Mingxing Water Supply Co., Ltd. announced that it will receive $1.4 million in an equity round of funding. The transaction will include participation from returning investor Sichuan Mingxing Electric Power Co., Ltd. to maintain its 100% stake in the company and will increase the registered capital of the company. |
American Water Works Company, Inc. May 12, 2017 American Water Works Company, Inc. (NYSE: AWK) registered 7,180,623 shares issuable pursuant to the American Water Works Company, Inc. 2017 Omnibus Equity Compensation Plan. American Water is a publicly traded water and wastewater utility company. |
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Hao Bai International Cayman Ltd Hao Bai International Cayman Ltd May 16, 2017 Hao Bai Internation Cayman Ltd announced a public offering on the Growth Enterprise Market of the Hong Kong Stock Exchange. Hao Bai designs, procures, and installs water circulation systems in the Hong Kong area and intends to use the proceeds to enhance its capital base, for financing, to strengthen technical and project management capabilities, to establish a Macau office and warehouse, to purchase tools and equipment and as general working capital. |
SUEZ SA May 16, 2017 SUEZ SA (ENXTPA: SEV) intends to raise $836 million through a private placement and a subsequent public offering for institutional investors. SUEZ SA provides water management, recycling and waste recovery, water treatment and consulting services. The company intends to use the proceeds for the acquisition of GE Water & Process Technologies.
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 Primo Water Corporation May 19, 2017 Primo Water Corporation (NasdaqGM: PRMW) registered a total of 2,650,000 issuable shares. Primo provides water dispensers, purified multi-gallon bottled water, and self-service refill stations at retailers. |
Shanghai Haoze Water Purification Technology Development Co., Ltd Shanghai Haoze Water Purification Technology Development Co., Ltd May 22, 2017 Shanghai Haoze Water Purification Technology Development Co., Ltd entered into an agreement to acquire 51% stake in Guandong Bili Drinking Water Equipment Co., Ltd from Wu Zongquan, Wu Danni and Zeng Duo for approximately $25 million. Guandong Bili Drinking Water Equipment Co., Ltd will become a subsidiary of Shanghai Haoze Water Purification Technology Development Co., Ltd. |
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Chongqing Kangda Environmental Protection Industry (Group) Co., Ltd. Chongqing Kangda Environmental Protection Industry (Group) Co., Ltd. May 23, 2017 Chongqing Kangda Environmental Protection Industry (Group) Co., Ltd. entered into an agreement to acquire 70% stake in Wenzhou City Chuangyuan Water Co., Ltd. from Zhejiang Xinbang Holding Group Co., Ltd. and Zhongtong Property Group Co., Ltd. for approximately $22.1 million. |
 Thames Water Limited May 24, 2017 An unknown buyer acquired stake in Thames Water Limited from AMP Capital Investors Limited in March 2017. Thames Water provides water and wastewater services in the UK. |
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 Sai Gon Water Infrastructure Corporation May 25, 2017 Sai Gon Water Infrastructure Corporation (HOSE:SII) announced that it will issue 6,146,000 common shares at $0.44 cents per share for gross proceeds of $2.7 million. Sai Gon provides water and wastewater services in Vietnam. |
 Modern Water plc May 25, 2017 Modern Water plc (AIM: MWG) placed 15,545,449 shares with WH Ireland. Senior management of Modern Water and others acquired an additional 355,000 Subscription Shares. Modern Water intends to use the net proceeds of the placement to further fund the execution of the group's strategy through various ongoing growth projects. |
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| Shenzhen Expressway Environment Company Ltd. Shenzhen Expressway Environment Company Ltd. May 25, 2017 Shenzhen Expressway Environment Company Ltd. signed an agreement to acquire a 20% stake in Chongqing Derun Environment Co., Ltd. from Chongqing Water Asset Management Co., Ltd for $647.5 million. Chongqing Derun is a Chinese water and waste company. |
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