Suez and Canadian Fund Manager to Buy General Electric Water

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Suez and Canadian Fund Manager to Buy General Electric Water

Suez Environnement said that it had partnered with a Canadian pension fund manager to acquire GE’s water treatment technology business in an all-cash deal that valued the business at about $3.4 billion.

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The industrial conglomerate put GE Water and Process Technologies up for sale in October after it agreed to merge its oil and gas division with a fellow services provider, Baker Hughes.

That deal came together after Baker Hughes’s planned merger with another oil field services company, Halliburton, collapsed after the United States Justice Department sued to block the combination.

With operations in 130 countries and over 7,500 employees, GE Water is a global leader in the provision of equipment, chemicals and services for the treatment of water and wastewater. In order to address its industrial clients' increasingly complex needs, GE Water invests heavily in research and development of unique solutions. Its innovative technology has made it one of the most sophisticated players in its industry.

Suez would acquire 70 percent of the water business, while the remaining 30 percent would be owned by the Canadian pension fund manager Caisse de Dépôt et Placement du Québec, the companies said.

The transaction valued the business at 3.2 billion euros, or about $3.4 billion.

The deal would bolster Suez’s geographic reach, particularly in the United States and in emerging markets, the French company said.

“Clients will benefit from the combined knowledge, expertise, geographic footprint and leading edge products and services available,” Jean-Louis Chaussade, the Suez chief executive, said in a news release. “The transaction will also deliver strong value to our shareholders by enhancing Suez’s profitable growth profile.”

The G.E. business provides water treatment and process services to industrial clients and reported revenue of $2.1 billion last year, with about half of that in North America. It has operations in 130 countries and has more than 7,500 employees.

The transaction is expected to close in mid-2017 and is subject to regulatory approval.

Read more at: New York Times and Street Insider

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