Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 
OFFON

4-Traders Homepage  >  Equities  >  Nyse  >  General Electric Company    GE

SummaryQuotesChartsNewsAnalysisCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsSector newsTweets

Suez targets industrial water with $3.4 billion GE Water deal

share with twitter share with LinkedIn share with facebook
share via e-mail
0
03/08/2017 | 08:21pm CEST

French waste and water group Suez has boosted its industrial water treatment business with the 3.2 billion euros (2.78 billion pounds) acquisition of GE Water from General Electric (>> General Electric Company).

French waste and water group Suez has boosted its industrial water treatment business with the 3.2 billion euros (2.78 billion pounds) acquisition of GE Water from General Electric (>> General Electric Company).

The deal will give Suez access to most major industries globally, including food and beverage, oil and gas, power, mining, pharmaceuticals, and micro-electronics and will make it a supplier to blue-chip companies such as Exxon-Mobil, Total, Shell, BASF, Nestle, Cargill, Intel, Samsung and Pfizer.

Chief Executive Jean-Louis Chaussade told reporters on Wednesday the industrial water market was more important than Suez's traditional municipal water market, because industry accounts for 15-20 percent of global water consumption compared with just 5-8 percent for human consumption in cities.

In an all-cash deal, Suez (>> Suez Environnement) and Canadian fund Caisse de dépôt et placement du Québec (CDPQ) will acquire 100 percent of GE Water's equity and debt through a 70/30 joint venture, to which Suez will contribute its existing industrial water activities. The new business will operate under the Suez brand.

The business will have revenue of about 2 billion euros, compared with Suez's 2016 revenue of 15.3 billion euros, and will employ 10,000 people, of which 7,500 will come from GE.

The industrial water market is worth about 95 billion euros globally and grows about 5 percent per year, Chaussade said.

Chaussade said there had been several rounds of bidding for GE Water, but believed that in the third and final round it was up against U.S. fund Clayton, Dubilier & Rice.

Suez has secured bridge financing for the deal, and may refinance it with a 750 million euro capital increase.

Its main shareholders, Engie (>> Engie S.A.), CriteriaCaixa and Caltagirone Group, have confirmed their intention to participate in the capital increase for their pro-rata share, Suez said.

Lead shareholder Engie said the cost of subscribing to the full extent of its 32.6 percent stake would be 240 million euros.

Suez finance chief Christophe Cross said that once the deal was finalised, probably early in the third quarter, Suez would prepare a capital increase.

Suez will also issue a 1.1 billion euro long-term senior bond and 600 million worth of hybrid bonds. CDPQ will contribute 700 million euros of equity to the venture.

Chaussade said Suez expected 200 million euros of revenue synergies per year in the group's water business, but had not included possible synergies between water and waste.

"Cross-selling between our water and waste units will be reinforced, as clients increasingly want environment services that include water and waste treatment," he said.

In the past 12 months, Suez shares have fallen about 13 percent, making them the second-worst performer in the Stoxx European Utilities index <.SX6P> after bigger peer Veolia (>> Veolia Environnement), whose shares are down about 22 percent.

Both firms are trying to diversify into industrial water as their traditional European water business stagnates.

(Reporting by Geert De Clercq; Editing by Adrian Croft and Mark Potter)

By Geert De Clercq

share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news on GENERAL ELECTRIC COMPANY
03:45p NEOGENOMICS, INC. (NASDAQ : NEO) Files An 8-K Departure of Directors or Certain ..
02:12p GENERAL ELECTRIC COMPANY : Today's Research Reports on Stocks to Watch: General ..
01:21p GENERAL ELECTRIC : GE Partners Lagos Ministry of Wealth Creation and Employment,..
12:27p MARKETS LIKELY TO OPEN FLAT : ICICIdirect
07/23 GENERAL ELECTRIC : Schenectady County Airport marks Lindbergh visit in 1927
07/23 GENERAL ELECTRIC : GE strives to increase number of women in its technology rank..
07/23 GENERAL ELECTRIC : Women made impact on GE
07/23 WOMEN'S WORK : GE strives to increase number of women in its technology ranks
07/22 US STOCKS TANK : Dow Jones loses 100 points
07/22 GENERAL ELECTRIC : Profits slide at GE Transportation
More news
News from SeekingAlpha
09:36a A REVIEW OF THE DIVIDEND HOUSE PORTF : Time For A House Inspection
09:10a A Bear On GE Outlines Reasons To Avoid This Name
08:25a The Week Ahead For Stocks - 5 Key Points
06:29a Cautious Optimism
06:20a GENERAL ELECTRIC Q2 EARNINGS : Well Deserved Drop
Financials ($)
Sales 2017 125 492 M
EBIT 2017 17 025 M
Net income 2017 12 429 M
Debt 2017 78 141 M
Yield 2017 3,71%
P/E ratio 2017 18,61
P/E ratio 2018 15,63
EV / Sales 2017 2,42x
EV / Sales 2018 2,12x
Capitalization 225 001 M
Chart GENERAL ELECTRIC COMPANY
Duration : Period :
General Electric Company Technical Analysis Chart | GE | US3696041033 | 4-Traders
Technical analysis trends GENERAL ELECTRIC COMPANY
Short TermMid-TermLong Term
TrendsBearishBearishBearish
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 17
Average target price 30,5 $
Spread / Average Target 18%
EPS Revisions
Managers
NameTitle
Jeffrey R. Immelt Chairman & Chief Executive Officer
Daniel Janki Treasurer & Senior VP-Global Operations
Jeffrey S. Bornstein Vice Chairman & Chief Financial Officer
Jim Fowler Chief Information Officer
Victor Abate Chief Technology Officer & Senior Vice President
Sector and Competitors
1st jan.Capitalization (M$)
GENERAL ELECTRIC COMPANY-18.01%225 001
3M18.25%126 113
SIEMENS-0.73%114 908
HONEYWELL INTERNATIONAL17.70%103 945
DUPONT15.18%73 299
ILLINOIS TOOL WORKS INC.20.28%50 881