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Water Industry Deals and News – September 2017
October 10, 2017The Monthly O’Melveny Water Report includes select transactions and other items of interest occurring during September 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 September, the tracked deal volume concentrated heavily in acquisitions. These deals were tracked in China, and the United States. Deal activity concentrated around water supply and water treatment sectors, as well as wastewater treatment. A few private and public financings were also tracked in China.
Mergers & Acquisitions
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WSP Global Inc. September 1, 2017 Management Consulting Services Company, WSP Global Inc. (TSX:WSP) acquired Leggette, Brashears & Graham, Inc. (LBG), which is headquartered in Shelton, CT. LBG works closely with public water suppliers and authorities, private industrial and commercial companies, and government agencies to locate and develop groundwater, to investigate and remediate soil and groundwater problems, and to address a wide range of water-related issues. Following the LBG acquisition, WSP’s water and environment business line in the United States comprises more than 600 employees. |
U.S. Water Services, Inc. September 8, 2017 U.S. Water Services, Inc. acquired Tonka Equipment Company, Inc. U.S. Water, an ALLETE Company, provides integrated water management solutions combining engineering, equipment, chemicals, and services. Minnesota-based Tonka Equipment manufactures and markets customized water treatment systems for municipalities across North America. It also provides water treatment project feasibility, planning, fabrication, inspection, conceptual design, process design, manufacturing, commissioning, and operator training. |
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Kunming Dianchi Water Treatment Co., Ltd. September 20, 2017 Kunming Dianchi Water Treatment Co., Ltd. (SEHK:3768) entered into a share transfer agreement to acquire Leshan Debeiao Water Limited from Zou Han Ping, Sichuan Weilai Luzhou Municipal Public Engineering Co., Ltd. and Sichuan Debeiao Environmental Technology Industrial Co., Ltd for approximately $12.2 million. Kunming Dianchi Water Treatment offers water treatment, sewage treatment, recycled water utilization, sewage sludge recycling, and other services. Kunming Dianchi Water Treatment also provides tap water production, atmospheric management, soil remediation, and other services. |
Kunming Dianchi Water Treatment Co., Ltd. September 18, 2017 Kunming Dianchi Water Treatment Co., Ltd. (SEHK:3768) entered into a conditional share transfer agreement to acquire Liuyang Hongyu Water Treatment Co., Ltd. from Liuyang Hongyu Thermal Power Co., Ltd. for approximately $19.77 million. Liuyang Hongyu Water Treatment produces and supplies running water, and engages in wastewater treatment and reclamation. The company was incorporated in 2016 and is based in China. |
Public & Private Financings
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China Water Affairs Group Limited September 4, 2017 China Water Affairs Group Limited (SEHK:855) commenced share repurchases under a program mandated by its shareholders in the company’s Annual General Meeting of the shareholders. China Water Affairs Group Limited is a water supply company headquartered in Hong Kong. It offers raw water supply, tap water supply, sewage treatment, hydroelectric power supply, water piping construction and water meters installation services in China. The company will repurchase up to 155,990,085 shares, representing 10% of its issued share capital. |
Shandong Taihe Water Treatment Technologies Co., Ltd. September 4, 2017 Shandong Taihe Water Treatment Technologies Co., Ltd. commended a public offering. Shandong Taihe engages in the research and development, production, and sale of water treatment chemicals. Its products are used in industrial circulating cooling water systems in electricity, metallurgy, and petrochemical industries, reverse osmosis systems in seawater desalination and pure water production, and in oil extraction. The company is based in Zaozhuang, China. |
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Phoslock Water Solutions Limited Phoslock Water Solutions Limited September 20, 2017 Phoslock Water Solutions Limited (ASX: PHK) announced a share purchase plan for its eligible shareholders whereby each shareholder can subscribe for up to approximately $12,104 worth of shares. The company also announced a private placement of approximately 26,300,000 shares. Phoslock Water Solutions Limited is engaged sale and marketing of the product, Phoslock, produced from modified bentonite clay, which reduces the amount of filterable reactive phosphorus present in water. Phoslock is used in large lakes, drinking water reservoirs, prawn aquaculture ponds, irrigation channels and various applications, such as golf course ponds, ornamental lakes, koi ponds and garden ponds. Phoslock is being manufactured at a production facility in Sichuan, China. |
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