Caisse de dépôt et placement du Québec and French industrial services company SUEZ will acquire General Electric Co.’s water and process technologies business.
The transaction, which values GE Water at approximately US$3.4 billion, includes a 30 per cent stake for Caisse at an investment of more than US$700 million and a 70 per cent stake for SUEZ. The French company will also contribute its industrial water business to GE Water to create a new self-standing business unit encompassing all industrial water activities with a global focus.
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GE Water, which has operations in 130 countries and more than 7,500 employees, provides equipment, chemicals and services for the treatment of water and wastewater. It also invests heavily in research and development. There are increasing global concerns related to industrial wastewater and its impact on the environment, which is one of the reasons Caisse is looking to increase its exposure to the water sector and views this investment as a way to generate long-term value, according to a press release.
“Operating in a core industry, GE Water has built a premier business with recurring revenues and a high-quality and diversified customer base,” said Michael Sabia, president and chief executive officer at Caisse, in a press release.
“This investment is therefore highly aligned with CDPQ’s long-term vision and its strategy of increasing its emphasis on stable assets anchored in the real economy, alongside a world-class operator such as SUEZ.”
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