Water Industry Deals and News – November 2017
January 3, 2018
The O’Melveny Monthly Water Report includes select transactions and other items of interest occurring during November 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 November, tracked global investment and activity in water-related projects increased compared to prior months, with deal volume split between financings and acquisitions. Companies focused on water supply and treatment, and wastewater systems made up most of the activity. China, Singapore, the United Kingdom, and the United States featured heavily, while deals were also tracked in Brazil, Canada, New Zealand, Northern Ireland, Oman, and Vietnam.
Mergers & Acquisitions
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November 1, 2017 Motor Controls, Inc. acquired Flowtronex and Water Equipment Technologies brands from Xylem Inc. (NYSE:XYL). Flowtronex and Water Equipment Technologies manufacture packaged irrigation, boost and lift systems, and controls for golf, landscape, agriculture, and water treatment packages. Motor Controls, based in Dallas, Texas, provides control panels and systems for water pumping and irrigation. |
SJWTX, Inc. November 9, 2017 SJWTX, Inc. entered into an agreement to acquire water system assets from Deer Creek Ranch Water Co., LLC. The agreement is subject to customary closing conditions, including the approval by the Public Utility Commission of Texas. SJWTX, based in Texas and doing business as Canyon Lake Water Service Company, provides water and wastewater utility services to more than 12,000 service connections in Comal and Blanco Counties. |
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Nimbus Water Systems, Inc. November 16, 2017 Kinetico Incorporated acquired Nimbus Water Systems, Inc. for an undisclosed amount. Kinetico, based in Newbury, Ohio, designs and manufactures nonelectric hydraulic water treatment products for residential, commercial, and OEM markets through distributors in the United States, the United Kingdom, Canada, France, and Denmark. Nimbus Water is a water treatment product distributor based in Toronto, Canada. |
November 18, 2017 Permian Water Solutions, LLC acquired a majority of the assets and operating business of Pyote Water Systems LLC for an undisclosed amount. Permian Water provides water disposal services to the oil and gas industry. Pyote Water owns and operates salt water disposal facilities and handling of oil field water. Pyote Water offers its services in petro and brine water disposal, and freshwater supply to oil and gas operators in the Permian Basin and EagleFord Shale regions of Texas and New Mexico. |
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Create Capital Development Limited Create Capital Development Limited November 23, 2017 Genview International Limited entered into the sale and purchase agreement to acquire Create Capital Development Limited from China Water Property Investment Limited for $8.3 million. |
November 28, 2017 Northern Ireland Water Limited was announced as preferred bidder to acquire four water treatment plants from Kelda Water Services (Alpha) Limited. Kelda Water operates a 25-year Design, Build, Finance and Operate contract with Northern Ireland Water focusing on the upgrade, operation and maintenance of five water treatment works and two strategic link mains - including the largest water treatment works in Northern Ireland. |
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November 28, 2017 Full Circle Home LLC acquired Soma Water, Inc. for an undisclosed amount. Soma Water, Inc. manufactures water filtration products and is based in San Francisco, California. Full Circle sells sustainable and stylish home cleaning products. |
Koester Canada Inc. November 29, 2017 Clearford Water Systems Inc. (TSXV:CLI) agreed to acquire Koester Canada Inc. from Koester Associates, Inc. for approximately $6.2 million. Koester Canada provides products and process solutions for the water and wastewater treatment industries. Clearford Water is a provider of unified water management and sanitation systems. |
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November 30, 2017 Oceania Natural Limited (NZSE:ONL) entered into a sale and purchase agreement to acquire Water for Everyone from Kauri Springs Aqua Limited for $520,000. Oceania Natural Limited is a New Zealand company involved in the production and distribution of natural food and supplement products sourced from New Zealand and the Pacific Islands and sold to domestic and international markets. |
November 30, 2017 SIIC Environment Holdings Ltd. (SGX:BHK) and SIIC Environment Holdings (Weifang) Co., Ltd entered into a sale and purchase agreement to acquire the Lingshui River waste water treatment project from Thunip Corp. Ltd. and Times International Industries Limited for $14.8 million. SIIC Environment Holdings (Weifang) Co., Ltd. also entered into a sale and purchase agreement to acquire Dalian Ziguang Water Treatment Co. Ltd. from Thunip Corp. Ltd. and Zhang Li for approximately $16.8 million. Singapore-based SIIC conducts operations in wastewater treatment, water purification treatment, and system automation, and installs industrial and municipal water purification and wastewater treatment systems. |
Public & Private Financings
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November 3, 2017 OMERS Infrastructure Management Inc., a private equity firm based in Toronto, Canada agreed to acquire an additional 4.36% stake in Kemble Water Holdings Limited. Kemble Water provides regulated water and wastewater services through its subsidiaries, such as Thames Water Utilities Ltd, a private utility company responsible for the public water supply and wastewater treatment in large parts of Greater London. After the acquisition, OMERS will increase its stake from 22.64% to 27% stake in Kemble Water. |
November 6, 2017 Malakoff Oman Desalination Company Limited, Summit Water Middle East Company, and Cadagua Al Ghubrah UK Limited, are offering 19,443,800 shares, 19,443,800 shares and 15,555,040 shares respectively of Muscat City Desalination Company under a share purchase offer. Muscat City Desalination Company engages in the sale of desalinated water in Oman and operates a water plant and a sea water reverse osmosis desalination plant. |
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MetroPac Water Investments Corporation November 9, 2017 MetroPac Water Investments Corporation entered into a share purchase agreement to acquire a 45% stake in BOO Phu Ninh Water Treatment Plant Joint Stock Company for approximately $11.8 million. Philippines-based MetroPac operates as an investment holding company and through its subsidiaries operates manages, maintains, and rehabilitates waterworks, sewerage, and sanitation systems and services. Based in Tam Ky, Vietnam, BOO Phu Ninh treats municipal water. |
November 13, 2017 Sofos Infrastructure Investment Fund SPC will be subscribing to all shares being offered by Darco Water Technologies Limited (SGX : BLR). Darco, based in Singapore, designs, manufactures, and installs engineered water systems for industrial applications and sells accompanying chemicals and electronic control systems. Darco expects to raise net proceeds of $1.5 million from the offering after deducting all issuance related expenses. In a separate private placement with Stone Robert Alexander, Darco expects to raise approximately $660,000. |
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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. |
November 15, 2017 120 Water Audit, LLC announced that it will receive $1,500,000 in funding by issuing common shares pursuant to the exemption provided under Regulation D of US securities laws. 120 Water, based in Zionsville, Indiana, provides lab water testing services to consumers and institutions in the United States. |
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Affinity Water Programme Finance Limited November 20, 2017 Affinity Water Programme Finance Limited began a bond issuance. Affinity raises finance on behalf of its parent, Affinity Water Limited, a water supply company in the United Kingdom, serving approximately 3.6 million people. The 2.699% Senior Secured Bonds due 2033 on offer are a part of a Multicurrency Programme. The Bonds will be unconditionally and irrevocably guaranteed by Affinity Water Holdings Limited, Affinity Water Limited and Affinity Water Finance plc. |
November 27, 2017 Seasons Apparel International Inc. will subscribe for 10,164,000 shares of New Concepts Holdings Limited. New Concepts is a contractor principally engaged in foundation, civil engineering, and general building works in Hong Kong, with a focus on environmental protection projects. New Concepts intends to use the proceeds of $4.8 million for general working capital and for the operation and development of a kitchen waste and water treatment business. |
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November 29, 2017 Stonehouse Water Technologies LLC announced that it has received $1.55 million in its first round of funding led by individual investor Mark G. Sellers. Stonehouse Water is an early stage startup developing a small, modular water purification system for residential, commercial, and agricultural customers. |
China Communications Construction Company (Brazil) Participações Ltda. November 30, 2017 CCCC Water Transportation Consultants Co., Ltd. entered into an agreement to acquire a 23.99% stake in China Communications Construction Company (Brazil) Participações Ltda. from CCCC South America Regional Company for $24.4 million. CCCC Water Transportation, based in Shenzhen, China, provides design, planning, and consulting services for water transportation infrastructure. |
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November 30, 2017 EagleTree Partners IV, managed by EagleTree Capital LP, along with Stars Investment Management Company acquired a majority stake in Waterfleet, LLC from several shareholders. Waterfleet operates mobile rig systems to provide clean water and ice to employees at temporary housing installations. |
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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. |