GE to acquire Zenon Environmental for $656 million
GE Water & Process Technologies, a unit of General Electric, has signed an agreement to purchase Zenon Environmental Inc.
GE Water & Process Technologies, a unit of General Electric, has signed an agreement to purchase Zenon Environmental Inc., in an all cash transaction valued at approximately $656 million.
Over its 26-year history, Zenon was a pioneer in the use of ultrafiltration technology for water and wastewater treatment. The company’s systems include membrane bioreactor (MBR) and hollow fiber technologies. It has an extensive patent portfolio that will enhance GE’s current water scarcity platform by providing pre-treatment technology for reverse osmosis desalination and reuse.
Zenon’s technology in municipal water treatment will enhance GE’s presence with advanced technology products in this large global industry. Zenon’s technologies also will help GE provide the best life-cycle cost reduction for customers in customized service agreements.
“Zenon is a great strategic fit with GE,” said David Calhoun, GE vice chairman and president and CEO of GE Infrastructure. “With the synergies we create, we will have the potential to grow revenue in the municipal water segment at more than 30% for the next several years. Its best-in-class membrane technologies will allow GE to serve the fast-growing ultrafiltration segment of water and wastewater treatment, significantly expand our capabilities to help customers address pressing water scarcity issues and play a key role in the high-growth areas of the municipal water segment. With this terrific addition, we anticipate our water platform growing to nearly US$2.5 billion in revenue next year.”
Andrew Benedek, Zenon Environmental chairman and CEO, said, “This transaction will benefit both our customers and GE’s customers. Our advanced membranes and talented team, combined with GE’s technology, scale, strong global network and services expertise, will open up new global opportunities for our ultrafiltration technology.”
Under the terms of the agreement, GE will acquire all of the issued and outstanding Common Shares of Zenon and the Non-Voting Class A Shares for CDN$24.00 in cash. Zenon option holders will be eligible to receive CDN$24.00 cash, less the exercise price of the respective option