PARIS (March 8, 2017)—SUEZ announced that, together with Caisse de dépôt et placement du Québec (CDPQ), it has entered into a binding agreement to purchase GE Water & Process Technologies (GE Water) from General Electric Company for €3.2 billion, or about $3.415 billion, enterprise value in an all‐cash transaction.
The transaction, unanimously approved by the Board of SUEZ, combines two complementary players and covers the entire value chain, making SUEZ a leader in water resource management, according to a statement from SUEZ about the deal. The company said the deal enhances SUEZ’s long-term profitable growth and offers an unparalleled value proposition to SUEZ shareholders.
SUEZ said the agreement will strengthen its international footprint in key geographies, notably in the U.S. and emerging markets, as well as generate significant cost and revenue synergies.
Under the transaction terms, SUEZ will acquire, along with CDPQ, in a 70/30 joint venture, 100 percent of GE Water. SUEZ will then contribute its existing industrial water activities (following consultation of Work Councils) to the newly dedicated Industrial Water business unit.
Jean‐Louis Chaussade, CEO of SUEZ, said: “I am very proud to announce the acquisition of GE Water, which will accelerate the implementation of SUEZ’ strategy by strengthening its position in the promising and fast‐growing industrial water market. This combination will create further value for both our employees, clients and shareholders. Clients will benefit from the combined knowledge, expertise, geographic footprint and leading edge products and services available. The transaction will also deliver strong value to our shareholders by enhancing SUEZ’ profitable growth profile. I look forward to integrating GE Water’s highly skilled staff to our teams to form an unparalleled industrial water platform. We are also thrilled to join forces with CDPQ, which shares our long term vision for our business.”
SUZE said GE Water is well-positioned in the €95 billion global industrial water market, growing at an expected 5 percent per annum, driven by regulations, environmental and economic performance. GE portfolio is diversified and well-balanced in terms of geographies (50 percent of the revenues in North America and 50 percent in the rest of the world) and verticals.
The integration of GE Water will give SUEZ the opportunity to widen its systems and service offerings, leveraging SUEZ expertise in O&M and GE Water’s digital platform InSight, according to the statement. Also, the contribution of GE Water to SUEZ Industrial Solutions business will enable the group to further optimize its operations in manufacturing supply chain, engineering and services deliveries.