Veolia expands water services to 22 new cities, industrial locations in North America
The water service provider will enlarge scope of its operations in a contract worth $27M.
BOSTON, JULY 12, 2017 -- Veolia North America announced that it acquired from American Water Works Company, Inc., the rights to 23 of its water treatment and energy service contracts. The transaction will expand the core municipal water business of Veolia, which is among the top providers of water and wastewater treatment services in the U.S. and Canada, and will see Veolia welcome 110 new employees to its North America operations.
The transaction includes contracts for water treatment services in locations across North America, including major metropolitan areas such as Phoenix, Ariz., the fifth-largest city in the U.S., and Seattle, Wash. Non-municipal contracts include a college in Illinois, a beverage company, a food processing company and a chemical company. Nearly a quarter of Veolia's business is devoted to water and wastewater solutions, making it well-suited to ensure a seamless transition for its new customers. In keeping with its commitment to community partnership, Veolia intends to work closely with business leaders and residents in the many communities where the newly-acquired contracts are located.
"We are excited to expand our water and energy services to these municipalities and industries, and welcome our new colleagues," said VNA Chief Executive Officer Bill DiCroce. "This is another example of our growing our capabilities and offering leading environmental solutions. We look forward to working with dozens of new communities and delivering the highest quality water and wastewater services available."
Veolia will be taking over 23 new contracts, of which 13 are wastewater contracts, four are drinking water contracts, five are wastewater and drinking water contracts, and one is a contract to provide steam and compressed air. Eighteen of these contracts are located in the U.S. in eight different states (Connecticut, Ohio, North Carolina, Illinois, Minnesota, Arizona, California and Washington), and five are located in Ontario, Canada. This move is also in line with the company's strategy to establish a greater presence in the western U.S., where six of the new contracts are located.
The transaction is worth $27 million. The new contracts represent a yearly turnover of $31.1 million.