GL&V divests the stormwater business as part of the restructuring of the operations of its Water Treatment Group
Management of Groupe Laperrière & Verreault Inc. announces that the Company has divested the Australian stormwater business of the Water Treatment Group, and associated Asian licenses to Rocla Pty Ltd., a subsidiary company of Fletcher Building Ltd., a New Zealand based group operating in the building industry...
MONTREAL, CANADA, April 2, 2007 -- Management of Groupe Laperrière & Verreault Inc. ("GL&V" or "the Company"; ticker symbols GLV.A, GLV.B/TSX) announces that the Company has divested the Australian stormwater business of the Water Treatment Group, and associated Asian licenses to Rocla Pty Ltd., a subsidiary company of Fletcher Building Ltd., a New Zealand based group operating in the building industry. The transaction was completed for a cash consideration of $2.1 million*, subject to certain adjustment clauses.
GL&V's President and Chief Operating Officer Richard Verreault said that the divestment of these activities, acquired as part of the Copa acquisition completed last October, is consistent with GL&V's objective to restructure part of the operations of the Water Treatment Group subsequent to the various acquisitions completed in recent quarters, i.e. five in 18 months. "In addition to improving its cost structure, this transaction will allow the Water Treatment Group to further focus on its core activities in the municipal and industrial sectors in selective growth water treatment markets." Richard Verreault added that the restructuring of the Water Treatment Group's activities in the United Kingdom following the acquisition of Copa is now close to completion and is expected to generate annual savings of approximately $1 million in operating expenses. The Water Treatment Group's UK operations are now divided into two business units, one of which focuses on the municipal market and the other on the power and industrial markets in Europe, Africa and the Middle-East. By the end of April 2007, the number of operating facilities in the UK will be reduced by two, which will notably entail the sale of one property.
Founded in 1975, GL&V is a world leader in liquid/solid separation technologies used in a large number of industrial, municipal and environmental processes. The Process Group offers an extensive selection of liquid/solid separation solutions intended for metal and minerals processing, as well as industrial and environmental processes used in various other markets such as pulp and paper, energy, chemicals, petrochemicals and food processing. The Pulp and Paper Group specializes in the design and marketing of equipment used in various stages of pulp and paper production, notably pulp preparation and sheet formation, and is a recognized leader in rebuilding, upgrading and optimization services for existing pulp and paper equipment. The Water Treatment Group specializes in the development and marketing of equipment for the treatment of municipal and industrial wastewater, drinking water and process water used in various industrial processes, as well as water intake screening solutions for power stations and refineries. Finally, an operating unit, GL&V Manufacturing, specializes in the production of large custom-made parts for external customers involved mainly in the pulp and paper and energy sectors, as well as GL&V's other units. GL&V is present in 40 countries on six continents and has approximately 2,400 employees.
*Note: All amounts are expressed in Canadian dollars unless otherwise indicated.