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Water Industry Deals and News - September 2016

9월 28, 2016 | Water

The O'Melveny Monthly Water Report includes select transactions and other items of interest occurring during August 2016. Please contact any member of the O'Melveny Water Practice for additional information on any of these items or any related items.  

Investment and activity in water-related projects slowed in August compared with July. Private and public financing activity nearly matched mergers and acquisitions, with most of the tracked activity centered in the United States. Private financings focused on the water-energy nexus, in both the renewables and fossil fuel sectors. American Water, the largest US publicly-traded water and wastewater utility company, continued adding customers through acquisitions, while EPCOR, a Canadian utility company, continued its push into United States markets, where it is now the largest private supplier of water in Arizona and New Mexico.

Venture Capital & Private Financings


Goodnight Midstream, LLC

August 3, 2016

Goodnight Midstream, LLC (formerly 1804 Operating) raised $80 million via a private placement with Dallas-based private equity firm Tailwater Capital LLC. The proceeds will be deployed to develop water gathering and saltwater disposal facilities in the Bakken region of North Dakota, as well as to fund expansion into Texas and other areas of interest. Goodnight Midstream owns and operates water gathering pipelines and salt water disposal wells for collecting and disposing of produced saltwater from oil and gas field processes. 

 

Chongqing Nanzhou Water Affairs Group Co. Ltd.

Chongqing Nanzhou Water Affairs Group Co. Ltd.  August 4, 2016

Chongqing Nanzhou Water Affairs Group issued an unknown amount of medium-term unsecured notes. The terms of the notes were not disclosed.


Zero Mass Water, Inc. 

August 4, 2016

Zero Mass Water, based in Scottsdale, Arizona raised $15 million in funding via private placement under Regulation D.  Zero Mass Water develops equipment that uses solar energy to produce potable water.

   

Mergers & Acquisitions



American Water Works Company, Inc. 
August 3, 2016

The largest US publicly-traded water and wastewater utility company, American Water Works Company, Inc. (NYSE: AWK), agreed to acquire Shorelands Water Company for $41.4 million.  Shorelands is a privately owned water utility serving over 11,000 customers in Momouth, New Jersey. The agreement is subject to the review and approval of the New Jersey Board of Public Utilities.

 

US Ecology, Inc. 
August 4, 2016

US Ecology, Inc. (NASDAQ: ECOL) agreed to acquire the assets of the RCRA Part B liquids and solids waste treatment and storage facility of Evoqua Water Technologies LLC in Vernon, California for an undisclosed amount.  The Vernon facility treats and recycles wastewater and is located five miles from downtown Los Angeles.

Beijing Hanjian Heshan Pipeline Co., Ltd.

Beijing Hanjian Heshan Pipeline Co., Ltd. 
August 15, 2016

Beijing Hanjian Heshan Pipeline agreed to pay approximately $5.1 million to acquire a 51% stake in Hubei Yuanshui Six Bureau Huazhe Hanjian Pipeline from Hubei Provincial Water Resources and Hydropower Planning Survey and Design Institute.  The acquisition will bring its holdings in Hubei Yuanshi to 73.5%. Beijing Hanjian Heshan Pipeline’s main product is prestressed concrete cylinder pipe which is applied in large and medium-sized water diversion projects, municipal water supply and drainage, and other water projects.

 


Beijing Water Business Doctor Co., Ltd.
August 15, 2016

Beijing Water Business Doctor agreed to pay approximately $13.2 million to acquire an additional 22% stake in Huizhou Daya Bay Yikesi New Material Technical Co, bringing its total stake in Huizhou Daya to 45%. Beijing Water Business Doctor is primarily engaged in water supply, reclamation, and recycling for industrial water treatment systems of large scale projects in the coal, chemical, petrochemical, and power industries. Yikesi is a petrochemical manufacturer operating in Guangdong Province.


Severn Trent Water Ltd. 
August 18, 2016

Amber Residential Property purchased a 13-acre development site in Worcester from Severn Trent Water Ltd. (LSE: SVT).  Severn Trent is a major UK water company, supplying approximately 3.7 million customers.  It also holds a property portfolio comprising of some 14,000 acres in the Midlands region of the United Kingdom.

   

EPCOR Water (USA) Inc. 
August 22, 2016

EPCOR Water (USA), a subsidiary of Alberta, Canada-based EPCOR Utilities, Inc., paid $71 million to acquire the 130 Pipeline Project, including associated contracts and debt.  The 53-mile wholesale water supply pipeline delivers groundwater from Burleson County, Texas to the Austin, Texas metropolitan area, marking EPCOR’s entry into Texas and its seventh acquisition since entering the US market in 2011.  EPCOR has invested $736 million in the United States, focusing on the Southwest region.




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New Concepts Holdings Limited
July 25, 2016

New Concepts, a Hong Kong-based civil engineering firm, placed $21.5 million worth of shares with CEF Concept Holdings Limited and Go Million International Limited, the proceeds of which will be used for working capital and the proposed acquisition of a water treatment business. 

 

  

New Concepts Holdings Limited
July 25, 2016

New Concepts, a Hong Kong-based civil engineering firm, placed $21.5 million worth of shares with CEF Concept Holdings Limited and Go Million International Limited, the proceeds of which will be used for working capital and the proposed acquisition of a water treatment business. 

 

  



Goodnight Midstream, LLC

August 3, 2016


Zero Mass Water, Inc. 

August 4, 2016

Zero Mass Water, based in Scottsdale, Arizona raised $15 million in funding via private placement under Regulation D.  Zero Mass Water develops equipment that uses solar energy to produce potable water.