Severn Trent Sells Water-Purification Business
Published on by Water Network Research, Official research team of The Water Network in Business
Severn Trent PLChas entered into a binding agreement to sell its Water Purification business to its joint venture partner, Milan-based private company Industrie De Nora.
The transaction values the total enterprise at $99 million.
The group's share of $81.2 million will be settled through a cash payment of $20.1 million and the balance through the settlement of net intercompany debt. The sale is expected to complete on or around June 30.
The water purification business had gross assets of 103.6 million pounds as at September 30, 2014, and reported in 2013/14 a loss in of 39.2 million pounds before interest and tax but after a goodwill impairment charge of 24.6 million pounds.
The business will be reported as a discontinued operation in Severn Trent Plc's Preliminary Results announcement on May 22.
The water purification business provides disinfection and filtration technology solutions for the Global Onshore and Offshore Energy, Marine and Municipal markets.
Proceeds from the transaction will be used for general corporate purposes, the utility said.
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