Severn Trent PLC has reached an agreement to sell its Water Purification business to joint venture partner Industrie De Nora SpA.
Through its operations in the U.S., Europe and Asia, the Water Purification business is a global player in the water treatment products industry focused on electrochlorination, disinfection and filtration. De Nora, an established, privately held company headquartered in Milan with offices and manufacturing facilities worldwide, brings strong engineering and product development capabilities that will enhance the combined offering with solutions for customers around the world.
Since 2002, Severn Trent and De Nora have been partners in a successful joint venture, Severn Trent De Nora, which specializes in electrochemical processes for water and wastewater treatment for the municipal, onshore and offshore energy and marine sectors. This entity, Severn Trent De Nora, is part of the transaction.
Severn Trent PLC recently reorganized and brought together its remaining non-regulated businesses into a new Business Services division. The sale of the Water Purification business will allow the management team to focus on creating value from its core businesses in water and wastewater services.
“Over the last 18 months we’ve made a number of improvements to the Water Purification business, including improving our sales process and contract management,” said Liv Garfield, CEO of Severn Trent PLC. “The business is now on a more stable footing and growing both the top and bottom line. However, it’s clear that in order for the business to fulfill its growth potential it needs manufacturing and product expertise and focus so it’s the right time for it to have a new owner. This sale will allow us to focus on our core water and wastewater service businesses in the U.K. and abroad.
“We remain committed to our Business Services portfolio, which is focused on delivering growth in water and waste water services in the U.K. and internationally.”
“De Nora and the Water Purification business are already undertaking several joint projects across several key market needs like ballast water treatment, reuse of water used in fracking processes, and denitrification of wells for drinking water,” said Luca Buonerba, chief marketing and business development officer of De Nora. “In addition, the planned full exploitation of De Nora’s geographical presence in untapped market like India and Brazil, as well as our unique manufacturing and assembly capability, shall serve as a springboard to solidify De Nora’s position as a major player in the global water arena.”
The transaction is expected to be completed by June 30.
EY Corporate Finance acted as sole financial adviser to Severn Trent, in respect of this divestment.
Source: De Nora
