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 | 08:03pm CEST

French waste and water group Suez has boosted its industrial water treatment business with the 3.2 billion euros ($3.4 billion) 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 ($3.4 billion) 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
01:37p GENERAL ELECTRIC : Presolicitation Notice - GE MR-750 Discovery MRI scanner and ..
05/25 GENERAL ELECTRIC : An Application for the Trademark "MIX DIRECTOR" Has Been File..
05/25 GENERAL ELECTRIC COMPANY : 's Trademark Application for "MYPLANT" Filed
05/25 GENERAL ELECTRIC : Trademark Application for "MIX CORE" Filed by General Electri..
05/25 GENERAL ELECTRIC : NPA's seizure of 156m euros equipment stalls 245MW power plan..
05/25 GENERAL ELECTRIC : MILITARY $8.58 Million Federal Contract Awarded to General El..
05/25 Alok Maskara Named as Next Chief Executive Officer of Luxfer Group
05/25 GENERAL ELECTRIC : GE East Africa Digital Roadshow
05/25 GENERAL ELECTRIC : FG Concessions Rail Lines to GE, Multinational to Invest over..
05/24 U.S. Patents Awarded to Inventors in Massachusetts (May 24)
More news
Sector news : Industrial Conglomerates
06:17p BA and Iberia plan third-party booking surcharge, Amadeus shares hit
05/25 EXCLUSIVE : Bankrupt Westinghouse ends pensions for ex-CEOs, executives
05/24 E I DU PONT DE NEMOURS AND : Loeb sees $20 billion more value from Dow-DuPont me..
05/24DJDOW CHEMICAL : Dan Loeb to Call for Changes to Dow-DuPont Post-Merger Plan--Upda..
05/24DJDOW CHEMICAL : Dan Loeb to Call for Changes to Dow-DuPont Post-Merger Plan -- Up..
More sector news : Industrial Conglomerates
News from SeekingAlpha
09:42a HONEYWELL : Activists Flooding Industrials
08:21a GE : Don't Scoop Up Shares Just Yet
07:29a GENERAL ELECTRIC : CEO Jeff Immelt Just Tapped Out
05/25 THE GOOD BUSINESS PORTFOLIO : 2017 1st Quarter Earnings And Performance Review
05/25 General Electric Company (GE) Presents At Electrical Products Group 2017 Annu..
Advertisement
Financials ($)
Sales 2017 125 725 M
EBIT 2017 18 164 M
Net income 2017 12 802 M
Debt 2017 35 615 M
Yield 2017 3,52%
P/E ratio 2017 18,92
P/E ratio 2018 15,78
EV / Sales 2017 2,18x
EV / Sales 2018 2,09x
Capitalization 238 722 M
More Financials
Chart GENERAL ELECTRIC COMPANY
Duration : Period :
General Electric Company Technical Analysis Chart | GE | US3696041033 | 4-Traders
Full-screen chart
Technical analysis trends GENERAL ELECTRIC ...
Short TermMid-TermLong Term
TrendsBearishBearishBearish
Technical analysis
Income Statement Evolution
More Financials
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 17
Average target price 32,1 $
Spread / Average Target 17%
Consensus details
EPS Revisions
More Estimates Revisions
Managers
NameTitle
Jeffrey R. Immelt Chairman & Chief Executive Officer
Shane Fitzsimons Senior Vice President-Global Operations
Jeffrey S. Bornstein Chief Financial Officer & Senior Vice President
Jim Fowler Chief Information Officer
Victor Abate Chief Technology Officer & Senior Vice President
More about the company
Sector and Competitors
1st jan.Capitalization (M$)
GENERAL ELECTRIC COMPA..-10.51%238 722
SIEMENS AG7.83%119 849
3M CO11.74%119 173
HONEYWELL INTERNATIONA..14.06%101 963
E I DU PONT DE NEMOURS..5.44%67 100
ILLINOIS TOOL WORKS IN..14.73%48 536
More Results