PARIS, and HARRINGTON PARK, N.J., July 27 /PRNewswire/ -- Suez Lyonnaise des Eaux has completed the acquisition of United Water Resources Inc. 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.
United Water 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 global division with annual revenues of approximately $8.1 billion dollars and operations in 120 countries. The group, which focuses exclusively on water services, hopes that the acquisition will give it a stronger foothold in the rapidly-growing North American water market.
Suez Lyonnaise des Eaux in 1999 acquired Nalco, a provider of chemical water treatment services and products, and Calgon, a provider of water conditioning.
United water will keep its corporate identity and continue operations under the original CEO, Donald L. Correll.
"We fully intend to be American in America," said Gerard Payen, member of the Suez Lyonnaise des Eaux executive board, and chairman of the Water Division. "As has been our practice elsewhere, United Water's operating companies will continue under their local management."
The acquisition agreement was announced on August 23, 1999, and the final regulatory approval needed to close the acquisition was received on July 27. 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 % stake in United Water Resources.
In 1997, both companies created jointly owned United Water Services to compete for non-regulated water and wastewater management contracts in North America. The former joint venture, now fully owned by the Suez Lyonnaise des Eaux Group's water division, has annualized revenues of approximately $160 million and currently operates 25 contracts in 11 states and Canada, including significant partnerships in Atlanta, Indianapolis, Milwaukee and Gary, Indiana.
United Water Resources is a holding company engaged in water-related businesses and real estate investments with a history that dates back to 1869. As the nation's second -largest private water services company, United Water Resources provides water and wastewater services through its regulated utilities and non-regulated municipal contract operations to more than 7.5 million people in over 400 communities in 17 states.
