SUEZ has 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 from General Electric Company for €3.2 billion in an all‐cash transaction.  

Under the terms of the transaction, SUEZ will acquire along with CDPQ, in a 70/30 joint venture, 100% 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.

GE Water is a worldwide leading systems and services provider for industrial clients, supplying state‐of‐the art water, waste‐water and process systems solutions to blue‐chip customers – the firm generated $2.1 billion revenues in 2016.

Announcing the acquisition, which was unanimously approved by the Board of SUEZ, SUEZ said the deal combines two complementary players, “covering the entire value chain making SUEZ a leader in water resource management. It enhances SUEZ’ long term profitable growth, and offers an unparalleled value proposition to SUEZ shareholders.”

 The deal provides broadened access to industrial clients, with significant scale up effect boosting go‐to‐market capabilities and sales force. It will also strengthen SUEZ’ international footprint in key geographies, notably in the US and emerging markets, reinforcing the group’s position in a fast growing addressable market of c. €95 billion worldwide.  

SUEZ said it would also increase innovation capabilities to deliver performing solutions, with a worldwide network of R&D centres, a large portfolio of patents and a cutting‐edge digital platform.

The acquisition is expected to generate significant cost and revenue synergies.

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.”

“GE Water has positioned itself as a key player in the water treatment industry thanks to its cutting‐ edge technology and a management team that has proven itself highly skilled at leveraging that competitive advantage,” said Michael Sabia, President and Chief Executive Officer at CDPQ.

“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.”

GE Water is very well positioned in the €95 billion global industrial water market, growing at an expected 5 % per annum, driven by regulations, environmental and economic performance. GE’s portfolio is diversified and well balanced in terms of geographies (50% of the revenues in North America and 50% in the rest of the world) and verticals.

The transaction also provides the potential for further cooperation and business opportunities with SUEZ’s other businesses, notably in the areas of recycling and resources/ energy recovery.  

The transaction is expected to close by mid‐2017 and is subject to receipt of required regulatory approvals (merger control authorities), including the European Union and the United States.