O’Melveny Water Industry Deals and News – Fourth Quarter 2016

Zhongshan Water Conservancy Hydropower Kance Design Consultation

Zhongshan Water Conservancy Hydropower Kance Design Consultation
October 10, 2016

JSTI Group (SZSE:300284) agreed to acquire a 70% stake in Zhongshan Water Conservancy Hydropower Kance Design Consultation from a group of 14 individuals for approximately $20.3 million. JSTI, headquartered in Nanjing, China, is an engineering services firm focused on research and development, materials, transportation, and water supply.  

 

Glacier Water Services Inc.
October 10, 2016

Primo Water Corporation (NasdaqGM:PRMW) entered into a definitive merger agreement to acquire Glacier Water Services Inc. (OTCPK:GWSV) for $86 million. Primo Water is a provider of multi-gallon purified bottled water, self-service refill water, and water dispensers. Glacier Water is a provider of drinking water dispensed to consumers through self-service refill water machines. The combined company will continue to be headquartered in Winston-Salem, North Carolina and will have approximately 46,000 retail locations throughout the US and Canada. 


Carlsbad Naturals 
October 11, 2016

Laguna Blends Inc. (CNSX:LAG) entered into a letter of intent to acquire a 19% stake in Carlsbad Naturals for $0.57 million, with an option to purchase a controlling interest in the future. Carlsbad Naturals produces nanotechnology-enhanced water and vitamin supplements, including a cannabidiol (CBD) water made with hemp. Laguna is a distributer of hemp and CBD products. Laguna’s growth strategy includes acquiring and incubating companies that formulate or manufacture hemp products. After completion of the acquisition of the initial minority interest in Carlsbad, Laguna, will receive exclusive marketing rights for CBD water in the following regions: Canada, Germany, Japan, India, South Korea, and Thailand. 

 

Avon Water Co.

Avon Water Co.
October 12, 2016

Connecticut Water Service Inc. (NasdaqGS:CTWS) entered into an agreement to acquire Avon Water Co. for $36.9 million. Post-acquisition, Avon Water Co. will maintain its separate corporate existence and current name. The transaction remains subject to approval by both the Connecticut Public Utilities Regulatory Authority and the Maine Public Utilities Commission. Avon Water serves roughly 4,800 customers in the Farmington Valley in Connecticut, which is adjacent to areas with existing operations run by Connecticut Water Service. After the transaction, the combined company will serve more than 132,000 water customers and approximately 3,000 wastewater customers in Maine and Connecticut.

Green Compliance Water Division Ltd.

 

Green Compliance Water Division Ltd. 
October 13, 2016

Integrated Water Services Ltd. agreed to acquire Green Compliance Water Division Ltd from APC Technology Group plc (AIM:APC) for approximately $1 million. Green Compliance Water Division is a UK-based engineering services firm focusing on water treatment and hygiene, including disinfection, legionella control, risk assessment, and data management. Integrated Water Services provides a range of water engineering services and has been expanding locally through acquisitions since 2010.

 

Heilongjiang Qitaihe Wanxinglong Water Co. Ltd.

Heilongjiang Qitaihe Wanxinglong Water Co. Ltd.
October 16, 2016

Chongqing Kangda Environmental Protection Industry (Group) Co., Ltd. entered into an equity transfer agreement to acquire Heilongjiang Qitaihe Wanxinglong Water Co. Ltd from Harbin Wanxinglong Industrial Development Co., Ltd. for approximately $17.4 million. Based in Chongqing, China, Chongqing Kangda Environmental designs, operates, and manages sewage and industrial wastewater treatment plants as well as municipal water supply and hydro projects. Heilongjiang owns and operates a wastewater reclamation and treatment facility.

Coalvent Limited

Coalvent Limited
October 17, 2016

Acacia Coal Limited (ASX:AJC) entered into an agreement to acquire Coalvent Limited from its founders for $2.65 million. Under the terms of the agreement, Acacia will acquire all of the shares of Coalvent and thereby gain the right to acquire 74% of Riversdale Anthracite Colliery, with the remaining 26% of Riversdale to be acquired by African Onca Pty Limited. A key component of this coal mine acquisition is the grant of water licenses to carry out the mining processes.

 

Yunnan Zhengxiao Environmental Protection Investment Co., Ltd. 

Yunnan Zhengxiao Environmental Protection Investment Co., Ltd. 
October 24, 2016

Yunnan Water Investment Company Limited (SEHK:6839) entered into the equity transfer agreement to acquire the remaining 40% stake in Yunnan Zhengxiao Environmental Protection Investment Co., Ltd. that it does not own from Yunnan Zhengxiao Cables Co., Ltd. for $33.3 million. Yunnan Water is an investment holding company that develops, designs, constructs, operates, and maintains municipal water supply and wastewater treatment facilities in China. Yunnan Zhengxiao Environmental provides medical waste treatment services in China.

 

Dong Nai Water Co., Ltd. 
October 25, 2016

Refrigeration Electrical Engineering Corporation (HOSE:REE) sold 6.76 million shares (representing an unknown ownership interest) in Dong Nai Water Co., Ltd., a Vietnamese construction and water supply company for $400,000. Refrigeration Electrical Engineering Corporation provides mechanical and electrical engineering services in Vietnam.

 

Galaxy NewSpring Pte. Ltd.

Galaxy NewSpring Pte. Ltd. 
October 26, 2016

Yunnan Water (Hong Kong) Company Limited entered into a share purchase agreement to acquire the remaining 50% stake in Galaxy NewSpring Pte. Ltd. it does not currently own from Hyflux Ltd (SGX:600) for $140 million in cash. Post-closing, Galaxy NewSpring will operate as a wholly owned subsidiary of Yunnan Water (Hong Kong). Yunnan Water (Hong Kong) provides municipal water and wastewater services. Singapore-based Galaxy NewSpring constructs, operates, and maintains wastewater facilities in China. Galaxy NewSpring had been a joint venture between Hyflux and Yunnan Water (Hong Kong).

 

Arabian Company and Sasakura for Water and Power
October 27, 2016

Sasakura Engineering Co., Ltd. (TSE:6303), a Japanese engineering firm specializing in desalination plants and air-cooled heat exchangers, entered into an agreement to acquire an additional 50% stake in Arabian Company and Sasakura for Water and Power from ACWA Holding Company for $4.3 million. Under the terms of the transaction, Sasakura Engineering will acquire 1,000 shares and will hold an 85.1% stake in Arabian Company and Sasakura for Water and Power upon completion. The transaction will increase the involvement of Saskura in desalinization operations in Saudi Arabia.

 

Xinnuo Water (Binzhou) Co. Ltd.

Xinnuo Water (Binzhou) Co. Ltd. 
October 31, 2016

Zhonghuan Hengrun (Beijing) Environmental Technology Co., Ltd entered into a framework agreement to acquire Xinnuo Water (Binzhou) Co. Ltd., a municipal wastewater treatment provider, from Sino Water Pte Ltd. for $2.97 million. The transaction was approved by Laodian Town People’s Government.

Advanced Leak Detection Pty Ltd.

Advanced Leak Detection Pty Ltd.
November 2, 2016

Water Intelligence plc (AIM:WATR) agreed to acquire Australian leak detection companies Advanced Leak Detection Pty Ltd. and Australian Watermain Pty Ltd. from a former franchise of American Leak Detection Inc. for $0.43 million.

 
 

Environmental Treatment Systems, Inc.
November 2, 2016

Evoqua Water Technologies LLC signed a definitive agreement to acquire Environmental Treatment Systems, Inc. Environmental Treatment Systems will be a part of Evoqua’s Industrial Projects and Services division. Georgia-based Environmental Treatment Systems designs and manufactures components and systems for a range of industrial wastewater needs, including dissolved air flotation and biological treatment. The terms of the acquisition have not been disclosed.

 

SUEZ Groupe
November 2, 2016

Sino-French Holdings (Hong Kong) Limited entered into an agreement to acquire recycling and recovery and construction businesses in China from SUEZ Groupe for $52 million. SUEZ Groupe will receive cash and stock for SITA Waste Services Ltd, Degremont Asia Limited, SITA Sha Tin Waste Services Limited, SITA Asia Pacific Limited, Degremont Water Treatment Systems (Beijing) Co., Ltd. and their respective subsidiaries, minority invested companies, and joint ventures. SUEZ (Asia) Limited will hold 58% stake in Sino-French Holdings (Hong Kong) Limited after the transaction. Sino-French Holdings (Hong Kong) is invested in 27 water treatment projects, two sludge treatment projects, and four technical consultancy companies in mainland China, Hong Kong, and Macau.

 
 

Chongqing Machinery & Electric Company Ltd.
November 4, 2016

Chongqing Machinery & Electric Company Ltd. (SEHK:2722) entered into an agreement to acquire 49% stake in Water Gen Power Srl from Mario Bianchi and others for $0.75 million. Under the terms of the agreement, Chongqing Machinery & Electric will acquire a 35% stake in Water Gen Power from Mario Bianchi and shall further acquire 14% equity interest through capital injection. Water Gen Power is an infrastructure construction firm based in Genova, Italy focused on water and sewer mains. Chongqing Machinery & Electric, based in China, manufactures machinery, vehicle parts, and power tools.

Zhejiang Longjing Water Industry Co., Ltd.

Zhejiang Longjing Water Industry Co., Ltd.
November 7, 2016

Taiyuan Lionhead Cement Co.,Ltd. (SHSE:600539), a cement manufacturer based in Taiyuan, China, agreed to acquire a 70% stake in Zhejiang Longjing Water Industry Co., Ltd. from certain shareholders for approximately $17.2 million. Zhejiang Longjing Water manufactures water treatment systems, pipe fittings, and water supply hardware.

 
 

California American Water Company
November 10, 2016

California American Water Company, the California subsidiary of water utility American Water (NYSE: AWK), agreed to acquire Geyserville Water Works System for $1.5 million. Geyserville Water Works supplies water to homes and businesses in Sonoma, California. The acquisition has been approved by the California Public Utilities Commission.

 

Beijing Capital Co. Ltd. 
November 11, 2016

Beijing Capital Co., Ltd (SHSE:600008), a state-owned enterprise operating in financial services, real estate, and urban infrastructure, particularly water, agreed to acquire Huainan Shuntong Sewage Treatment Co., Ltd. and Huainan Yuanzhuang Water Industry Co., Ltd. 

 

Anhui Water Resources Development Co., Ltd. 

Anhui Water Resources Development Co., Ltd.   

November 13, 2016

Anhui Water Resources Development Co., Ltd. (SHSE:600502) agreed to acquire China Anhui Water Resources Construction Engineering Corp. Anhui Water is based in Bengbu, China and operates as a general contractor for public works, including waterways and hypdropower plants.

 

Agthia Group PJSC 
November 14, 2016

Abu Dhabi-based food and beverage company Agthia Group PJSC (ADX:AGTHIA) signed a purchase agreement to acquire Delta Water Factory Company from Delta Marketing Co., Ltd. Delta Water produces and distributes bottled water in Saudi Arabia.

 
 

iCON Infrastructure LLP
November 15, 2016

iCON Infrastructure Partners III, L.P., managed by iCON Infrastructure LLP, agreed to acquire a 30% stake in Bristol Water plc from SUEZ SA (ENXTPA:SEV). The deal will result in iCON indirectly controlling 80% of Bristol Water’s shares. Bristol Water supplies drinking water and sewer services to homes and businesses, serving approximately 1.1 million people in the Bristol area. iCON Infrastructure, a London-based investment firm, invests in the national infrastructure sector, focusing on public services such as water and wastewater. 

 

Severn Trent Water Ltd. 
November 16, 2016

Severn Trent Water Ltd. (LSE:SVT), a major municipal water and sewer service provider in the UK, entered into an agreement to acquire Dee Valley Group plc (LSE:DVW) for $97 million. Dee Valley supplies drinking water services to parts of North East Wales and parts of North West England.

 

Win Holding Co., Ltd. 

Win Holding Co., Ltd. 
November 16, 2016

Win Holding Co., Ltd., based in Shenzhen, China, acquired Guangdong Robust Corp from Danone (ENXTPA:BN). Guangdong Robust engages in the production of non-alcoholic beverages and dairy products in China. Win Holding will take over the purified bottled water brand and six plants across the country.

 

Woodard & Curran Inc.
November 16, 2016

Woodard & Curran Inc., a privately held engineering and operations firm focused on water and environmental project design, acquired RMC Water and Environment, Inc. RMC Water and Environment is a California-based environmental engineering company focused exclusively on water.

 
 

U.S. Water Services, Inc.
November 18, 2016

U.S. Water Services, Inc., an Allete Company (NYSE: ALE), acquired Water & Energy Systems Technology, Inc. (West). U.S. Water engages in chemical water treatment, as well as water equipment production, engineering services, and equipment services. West provides specialty chemicals and engineering service for water treatment in a variety of industries including commercial and institutional facilities, light industry, oil fields, and central heating/cooling plants.

QEP Field Services, LLC

QEP Field Services, LLC
November 21, 2016

QEP Field Services, LLC entered into a purchase and sale agreement to acquire water gathering facilities in Billings, Dunn, and Stark Counties, North Dakota from Whiting Oil and Gas Corporation for $50 million. WBI Energy Midstream, LLC, a subsidiary of MDU Resources Group, Inc. (NYSE: MDU), and Whiting Oil and Gas Corporation have entered into an agreement to sell their ownership interests in the Pronghorn natural gas processing plant near Belfield, North Dakota, to QEP Field Services, LLC for $200 million. In addition to the plant, associated assets include 137 miles of natural gas-gathering pipeline and 143 miles of oil-gathering pipeline. In related transactions, QEP Field Services, LLC has also entered into an agreement to acquire gas processing and gathering facilities in Mountrail County and natural gas processing and oil and gas gathering facilities in Dunn and North Dakota.

 
 

Rio Tinto plc
November 23, 2016

Liberty House Ltd. and SIMEC Group Limited agreed to acquire 100% of Alcan Aluminum UK Ltd., a subsidiary of Rio Tinto plc (LSE:RIO), an Australian mining company, for $407 million. Alcan operates an aluminum smelting operation at Lochaber near Fort William in Scotland. The transaction includes the hydro-electric plants at Lochaber and Kinlochleven powering the smelter, the Lochaber aluminum smelter, and a 100,000 acre estate comprising the water basin. Liberty House Ltd. manufactures and distributes steel and advanced engineering products. SIMEC Group Limited operates shipping, industrial, mining, energy, and commodities businesses. 

 

Strauss Group Ltd.
November 29, 2016

The Strauss Group Ltd (TASE:STRS), one of the largest food manufactures in Israel, signed an agreement to acquire full ownership of Strauss Water from non-controlling interest shareholders, increasing its stake by 12.44% for $17.2 million. Strauss Water manufactures and markets hot, cold, and carbonated water dispensers for commercial and residential use.

 
 

Beijing Oriental Yuhong Waterproof Technology Co., Ltd.
December 2, 2016

Beijing Oriental Yuhong Waterproof Technology Co., Ltd (SZSE:002271) agreed to acquire Daw Asia from Daw Se for $26 million. Beijing Oriental Yuhong Waterproof Technology is Asia’s largest waterproofing system provider for important infrastructure construction projects, industrial buildings, civil buildings, and commercial buildings.

Arizona Water Banking Authority

 

Arizona Water Banking Authority 
December 2, 2016

Arizona Water Banking Authority entered into an agreement to acquire 50,000 Long Term Storage Credits in Arizona from Vidler Water Company, Inc. for $12.5 million. Vidler Water is a wholly owned subsidiary of PICO Holdings, Inc. (NASDAQ:PICO).

 
 

Acque Potabili S.p.A 
December 6, 2016

Iren SpA (BIT:IRE) agreed to acquire the remaining 55.08% stake in Acque Potabili S.p.A, Water Services Business Branch from Acque Potabili S.p.A. for $28.1 million. The Board of Directors of Iren SpA has approved the acquisition of a business branch composed of the integrated water service concessions. Iren SpA is a top player in the Italian multi-utilities sector, operating in electricity, gas, district heating, integrated water service, and waste. Acque Potabili S.p.A. supplies drinking water, sewage, and water treatment services in Italy.

Water Midstream Partners, LLC

 

Water Midstream Partners, LLC  
December 12, 2016

Solaris Water Midstream, LLC acquired Water Midstream Partners, LLC (WMP). As part of the transaction, Solaris Water’s Midland County system will be connected to WMP’s Midland County system. Solaris Midstream is an independent, growth-oriented midstream company that owns, operates, and designs crucial midstream assets across key unconventional US basins. WMP provides water midstream services to producers working in the Midland Basin of West Texas. 

 

Ningbo Qiyao New Energy Company Limited 

Ningbo Qiyao New Energy Company Limited  
December 15, 2016

New China Water (Nanjing) Renewable Resources Investment Co., Ltd. entered into an agreement to acquire Ningbo Qiyao New Energy Co., Ltd. from China Shipbuilding Industry Corporation (Shanghai) New Energy Company Limited for $0.85 million. The transaction is subject to approval of Shanghai Equity Exchange. New China Water (Nanjing) Renewable Resources Investment Co., Ltd. engages in the development, investment, construction, and operation of renewable waste resources utilization projects. Ningbo Qiyao principally engages in the operation of landfill gas power generation plant in the Ningbo Yinzhou landfill, located in Zhejiang Province.

 

Bristol Water plc 
December 15, 2016

iCON Infrastructure Partners III, L.P., a fund managed by iCON Infrastructure LLP, acquired 50% stake in Bristol Water plc from Capstone Infrastructure Corporation for approximately £120 million. Proceeds from the sale will be used to eliminate CAD 194 million (£116.61 million) of the outstanding CAD 291 million (£174.92 million) balance of the promissory note issued by Capstone to Irving Infrastructure Corp. on April 29, 2016. iCON is a London-based independent investment group focusing on privately held investments in infrastructure assets in Europe and North America. Bristol Water supplies drinking water to individuals and business within 1,000 square miles of Bristol, England. 

 
 

CSE Water UK Limited  

CSE Water UK Limited  
December 15, 2016

iCON Infrastructure Partners III, L.P., a fund managed by iCON Infrastructure LLP, acquired 71.4% stake in CSE Water UK Limited from Capstone Infrastructure Corporation for approximately $145.8 million. iCON Infrastructure issued a purchase note as consideration. iCON is a London-based independent investment group focusing on privately held investments in infrastructure assets in Europe and North America. Capstone Infrastructure Corp. owns and operates diversified infrastructure businesses in Canada and internationally.

 

Poseidon Water Limited  
December 16, 2016

Brookfield Infrastructure Partners L.P. (NYSE:BIP) acquired majority ownership in Poseidon Water Limited in 2016. Brookfield Infrastructure Partners L.P., headquartered in Hamilton, Bermuda, is one of the largest owners and operators of critical and diverse global infrastructure networks facilitating the movement and storage of energy, water, freight, passengers, and data. Poseidon Water is a water project development company experienced in the development of, management, and investment in a variety of projects undertaken through a public-private partnership approach.

 

Meiling Environmental

 

Meiling Environmental  
December 16, 2016

Kangda Investment (Hong Kong) Company Limited entered into an equity transfer agreement to acquire Meiling Environmental from China Meiling Environment Holdings Pte. Ltd. Under the terms of the transaction, the total consideration for the acquisition was approximately 540 million, including approximately $54.9 million as consideration for the acquisition of Meiling Environmental equity interest, projects, and assets. Kangda Investment (Hong Kong) Company Limited will have 100% equity interest in the Meiling Environmental and its two wholly owned subsidiaries engaging in sewage purification business, and a 49% equity interest in Zibo Tianqiyuan. Kangda Investment (Hong Kong) Company Limited is an investment holding company that constructs and operates wastewater sewage treatment plants in China. 

 

RWL Water Group  
December 20, 2016

RWL Water Group reached an agreement to acquire Acquavit from Alexandre Melo. Acquavit will be renamed as RWL Water Brasil. RWL Water Group offers global solutions for desalination, water, wastewater, waste-to-energy, recovery and reuse, and food and beverage processing. Acquavit is a well-established Brazilian water and wastewater treatment company.

 
 

Swisspower AG  
December 21, 2016

Swisspower AG acquired 27 water, wind, and solar power plants in Italy. Swisspower Renewables AG is a company established by more than 10 municipality utilities shareholders that invests in renewable energy generation facilities and focuses on onshore wind and hydro power in Central Europe.

 

Aquarbe Sa.  
December 21, 2016

Aquarbe Sa. acquired water supply service in Cantabria from Oxital España, S.L. Aquarbe Sa. is a company in the environmental sector that manages all processes related to the complete water cycle: catchment, drinking water treatment, transport, and distribution for human consumption with full health guarantees. Oxital España, S.L. is a pioneer in the development of innovative solutions in water purification and maintenance in Spain.

 

Xinjiang Chang Yuan Water Group Co., Ltd. 

Xinjiang Chang Yuan Water Group Co., Ltd. 
December 29, 2016

Shenzhen Jianxin Investment Development Co., Ltd entered into a contract to acquire a 51% stake in Xinjiang Chang Yuan Water Group Co., Ltd. from China Water Investment Co., Ltd. Xinjiang Chang Yuan Water Group Co., Ltd. offers water network development and operation services, mineral resource development, water investment, water project construction, and land development services. China Water Investment Co., Ltd., together with its subsidiaries, provides water project investment, operation, and management services.

Bei Kong (Dalian) Investment Co., Ltd.

Bei Kong (Dalian) Investment Co., Ltd. 
December 30, 2016

Fortune Future Limited and Honest World International Limited signed an agreement to acquire a 60% stake in Bei Kong (Dalian) Investment Co., Ltd. from Beijing Enterprises Water Group Limited (SEHK:371) for $217 million. Beijing Enterprises Water Group Limited is a large-scale group providing a broad range of water services and environmental protection services in China.

 
 

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