PALM DESERT, Calif., Sept. 12, 2002 -- USFilter Corp. recently announced it has signed an agreement to sell its waterworks distribution business to a company jointly owned by JPMorgan Partners, the private equity arm of J.P. Morgan Chase & Co., and Thomas H. Lee Partners, a Boston-based private equity firm, for a cash purchase price of $620 million.
The sale furthers USFilter's announced strategy to divest non-core assets and focus on its water-wastewater equipment and services businesses and consumer and commercial businesses.
USFilter's waterworks distribution business supplies pipes, hydrants, valves and meters through more than 140 sales and service centers in the United States. Total annual sales in 2001 were approximately $1.1 billion. The transaction, anticipated to be completed during the fourth quarter, is subject to normal regulatory approvals and satisfaction of customary conditions.
"Upon the sale of our waterworks distribution group, USFilter's total year-to-date proceeds from the divestiture of non-core assets will be over $1 billion, in-line with our stated target for 2002," said Andrew D. Seidel, USFilter President and CEO.
"Last week we announced that USFilter had signed an agreement to sell our Plymouth Products consumer products subsidiary to Pentair in a transaction which will be completed later this year. We also sold our filtration and separations group during the second quarter of this year. Completion of these transactions, along with our ongoing strategic acquisitions, will enable us to focus on the growth and development of our expanding core water-wastewater equipment and services businesses, as well as our consumer and commercial businesses."
USFilter waterworks distribution group President and COO, Harry Hornish, speaking about the prospects for the group under the ownership of JPMorgan Partners and Thomas H. Lee Partners, said, "I am extremely excited to partner with two great financial sponsors focused on putting us back into a growth mode and feel the change in ownership should be transparent to our customers, our employees and our suppliers. Additionally, both of our private equity sponsors currently have distribution businesses in their portfolios, so they have an understanding of our needs and our opportunities."
Stephen Murray, General Partner of JPMorgan Partners, said, "Under the guidance of the current management team, USFilter waterworks distribution group has established itself as the nation's leading distributor of waterworks products. We believe the company is well positioned to capitalize on favorable trends in the waterworks infrastructure market due to its national footprint, superior service offerings, and experienced management team. We look forward to working with management to grow the company both organically and through acquisitions."
Tony DiNovi, Managing Director of Thomas H. Lee Partners, said, "This is a business with strong free-cash flow characteristics, industry-leading margins and a management team with a proven track record of quickly integrating acquisitions. As the largest distributor of industrial products to the nation's water industry, the company is well positioned to service the growing infrastructure needs of this vital segment."
About USFilter
United States Filter Corporation, a Vivendi Environnement company, is North America's largest water company providing comprehensive water and wastewater systems and services to commercial, industrial, municipal and residential customers. Vivendi Environnement (Euronext Paris:VIE) (NYSE:VE - News), comprised of Vivendi Water (worldwide water products and services), Onyx (solid waste and industrial services), Dalkia (energy management), Connex (transportation and logistics) and FCC (Spanish company engaged in environmental and construction related industries), is the largest environmental services company in the world. Visit the company's web sites at www.usfilter.com or www.vivendienvironnement-finance.com.
About JPMorgan Partners
JPMorgan Partners (JPMP), formerly Chase Capital Partners, is a global partnership with over $29 billion under management. It is a leading provider of private equity and has closed over 1,800 individual transactions since its inception in 1984. JPMP has more than 150 investment professionals in eight offices throughout the world. JPMorgan Partners' primary limited partner is J.P. Morgan Chase & Co. (NYSE:JPM - News), one of the largest financial institutions in the United States. For additional information, please visit our website at www.jpmorganpartners.com.
About Thomas H. Lee Partners
Thomas H. Lee Partners, L.P. is a Boston-based private equity firm focused on identifying and acquiring substantial ownership positions in growth companies. Founded in 1974, Thomas H. Lee Partners currently manages approximately $12 billion of committed capital. Notable transactions sponsored by the firm include TransWestern Publishing, Fisher Scientific, Cott Corporation, Metris Companies, Experian, Rayovac, HomeSide Lending and Snapple Beverage.
Goldman, Sachs & Co. acted as financial advisor to USFilter on this transaction. O'Melveny & Myers LLP and Weil, Gotshal & Manges LLP acted as legal advisors to JPMorgan Partners and Thomas H. Lee Partners on this transaction. Sutherland Asbill & Brennan LLP acted as legal advisor to USFilter on this transaction.
Source: USFilter
