With operations in 130 countries and over 7500 employees, GE Water generated approximately US$2.1 billion in revenues in 2016.
Suez is forming a 70/30 joint venture with CDPQ to acquire 100% of GE Water in an all cash transaction. Suez will then contribute its existing industrial water activities to a new self-standing Industrial Water business unit. CDPQ is investing over US$700 million for its 30% stake.
Jean-Louis Chaussade, CEO of Suez, said the acquisition of GE Water will accelerate the implementation of Suez’s strategy by strengthening its position in the promising and fast-growing industrial water market. “I look forward to integrating GE Water’s highly skilled staff to our teams to form an unparalleled industrial water platform,” said Chaussade.
“Operating in a core industry, GE Water has built a premier business with recurring revenues and a high-quality and diversified customer base. This investment is therefore highly aligned with CDPQ’s long-term vision and its strategy of increasing its emphasis on stable assets anchored in the real economy, alongside key operators such as Suez,” said Michael Sabia, president and CEO at CDPQ.
Suez has a fully underwritten bridge financing in place for the transaction.
The deal is expected to close by mid-2017 and is subject to receipt of required regulatory approvals and other customary closing conditions.
Last year CDPQ partnered with German investment company SKion to acquire Ovivo Inc.
