The acquisition of GE Water barely complete, already the Suez won the contracts. The world number two for the treatment of water and waste announced Monday, have won several contracts in the industrial water, at the time of the French group finalizes the acquisition of the branch water of the american General Electric (GE Water), which was acquired in early 2017 to 3.2 billion euros.
Suez has signed a contract with the oil giant BP to equip an effluent treatment system in his factory for the liquefaction of natural gas in west Papua (Indonesia), has detailed the group in a press release. This equipment will be able to process 600,000 gallons of effluent per day.
Suez has also won a contract to design and supply of effluent treatment systems for three coal-fired power plants in the United States, with companies Louisville Gas and Electronic Company (LG&E) and Kentucky Utilities. The amounts were not disclosed.
The former CEO of GE Water at the head of the new subsidiary
The activities of GE Water and Suez in the industrial water are combined into a new subsidiary single called “Water Technologies and Solutions”, headquartered in Paris, said Jean-Louis Chaussade, ceo of Suez, during a conference call.
It will be led by Heiner Markhoff, former CEO of GE Water, under the supervision of Mayor-Ange Debon, deputy director general of Suez in charge of the international, and will bring together 10,000 people, of which 7.500 from GE Water.
The Caisse de dépôt et placement du Québec (CDPQ) will own 30% of this new subsidiary, which represents a turnover between 2.5 and 2.6 billion dollars (between 2.1 and 2.2 billion euros approximately). Suez, which financed the transaction through a capital increase of 750 million euros, achieved last may, expects 200 million euros of revenue synergies per year and cost synergies of $ 65 million of euros per year.
The group will unveil the 13 December a strategic plan over three years to the markets of industrial water, of which it is estimated the growth at 5% per year.
(with AFP and Reuters)