U.S. Water News Online
PARIS, and HARRINGTON PARK, N.J. --Suez Lyonnaise des Eaux (LY: Paris Bourse) the world's largest provider of water and wastewater services has completed the acquisition of United Water Resources Inc. (NYSE: UWR) the second-largest private water services company in the U.S., in an all-cash transaction valued at $1.02 billion. Following the acquisition by its largest shareholder, United Water Resources became a wholly-owned subsidiary of Suez Lyonnaise des Eaux.
Under the terms of the transaction, United Water Resources shareholders will receive $35.00 in cash for each United Water Resources common or common equivalent share held, plus a special closing dividend of 30 cents per common share and stub period dividends of approximately 19 cents per common share and 5 cents per preference share.
The acquisition of United Water Resources strengthens a strategic alliance forged in 1994 and follows the recent alignment of the Suez Lyonnaise des Eaux Group's water holdings into a unified, global division with annual revenues of approximately $8.1 billion dollars and operations in 120 countries. With an exclusive focus on water services, the division maintains world leadership positions in water management, water treatment technology and turnkey engineering. Full ownership of United Water Resources, along with the 1999 acquisitions of Nalco, the world's largest provider of chemical water treatment services and products, and Calgon, a worldwide leader in water conditioning, is consistent with a business development plan designed to give Suez Lyonnaise des Eaux a competitive edge in the rapidly-growing North American water market.
"Acquiring our strategic ally, United Water Resources, an acknowledged U.S. water industry leader, supports our corporate commitment to deliver the essentials of life through businesses engaged in energy, water, waste services, and communications," said Gerard Payen, member of the Suez Lyonnaise des Eaux executive board, and chairman of the Water Division. "Water is our second largest core business. We are absolutely committed to the water sector and to intensifying our participation in the growth and development of the attractive North American water services market. The combined resources of United Water with our other water-related holdings in the U.S. and our global water services network create an exceptional platform for sharing our technological know-how and research capabilities with consumers and industry throughout North America."
The acquisition agreement was announced on August 23, 1999, and the final regulatory approval needed to close the acquisition was received on July 27, 2000. As part of the transaction United Water Resources shareholders have already received a total of 18 cents per share, paid in three separate dividend increases of 6 cents per share. An additional special dividend of 30 cents per share funded by Suez Lyonnaise des Eaux, will be paid to shareholders with the $35.00 per share merger consideration.
With annual revenues of $32.5 billion, Suez Lyonnaise des Eaux Group is a world leader in private infrastructure services, with operations in more than 120 countries. Its Water Division is a market leader in the water sector serving 107 million consumers and 60,000 industrial clients and has $8.1 billion in revenues. Suez Lyonnaise des Eaux has been a principal shareholder in United Water Resources since 1994 following United Water's merger with GWC Corporation. Prior to the acquisition Suez Lyonnaise des Eaux had a 33 percent stake in United Water Resources.
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