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Metso Minerals to close Colorado plant
November 2003
NEWS
Pump Industry Analyst
VEOLIA TO SELL BULK OF USFILTER FOR 2BN
ITT ADDS TO WATER TREATMENT PORTFOLIO
STRONG ORGANIC GROWTH FOR SULZER PUMPS
Veolia Environnement (VE) intends to sell most of the businesses in its subsidiary USFilter to reduce its US$13 billion debt load. VE will sell USFilter’s Consumer & Commercial business and its combined Systems and Services & Products business, but will retain the Operating Services and Engineering & Construction division, which it says is more aligned with its core business of long-term service contracts with municipalities and industries. USFilter’s Consumer & Commercial division comprises Culligan and Everpure, which operate in the residential and commercial water treatment sectors and have annual sales of more than US$740 million. The USFilter Systems and Services & Products business is the largest water and wastewater treatment equipment and associated services company in the world, with annual revenues of US$1.2 billion, and an installed base of thousands of installations. “As VE more precisely defined their strategic focus around long-term operating contracts, much of the USFilter business scope fell outside of their definition,” said Andy Seidel, CEO of USFilter. Seidel estimates that it could take up to a year to find a buyer. VE, formerly Vivendi Environnement, was spun off from media group Vivendi Universal this year. It acquired USFilter four years ago for almost US$8.5 billion including debt. The sale of the USFilter assets continues efforts to reverse a costly series of acquisitions undertaken by former Vivendi Universal chief JeanMarie Messier. VE has already raised about 2 billion from the sale of USFilter assets.
ITT Industries Inc is set to acquire Wedeco AG Water Technology, the German manufacturer of ozone oxidation and ultraviolet disinfection equipment. The US company intends to offer 18 per Wedeco share in cash, which is a 36% premium over the three-month average closing price. The offer values Wedeco at 233.1 million, including the assumption of 34.3 million in net debt. Once the deal is completed, Wedeco will become part of ITT Fluid Technology’s Sanitaire division. Robert Ayers, president of ITT Fluid Technology, said that the acquisition gives ITT a unique opportunity to further round out its water and wastewater treatment portfolio. He described Wedeco’s product line as a perfect complement to Sanitaire’s Biological and Filtration divisions, and said that the transaction follows ITT’s strategy of strengthening its businesses through strategic acquisitions of adjacent technologies. Wedeco, based in Düsseldorf, Germany, employs 800 people in seven manufacturing facilities - two in Germany, and one each in the USA, France, Italy, Hungary and South Korea. The company reported 2002 full-year revenues of 134 million, and operating income of 13.1 million. Wedeco CEO Werner Klink said that in founding the company he had a vision to change the paradigm of the water treatment industry. “This transaction, the resources of ITT and the proven leadership of our current CFO Christoph Dicks as my successor and new CEO of Wedeco make me very confident that I have achieved my goal.”
Order intake for Sulzer Pumps rose 24% in the third quarter. For the first nine months order volume rose 12% to SFr747 million in local currencies, while nominal growth was 3%. While Asia remains buoyant, the North American market continues to disappoint.
16
METSO MINERALS TO CLOSE COLORADO PLANT Metso Minerals is to shut down its minerals processing equipment and pump plant based in Colorado Springs, Colorado, USA. A plant producing mining and crushing equipment and screens in Ketsch, Germany will also be closed. The two units currently employ 190 people. The plant closures are part of Metso Minerals’ efforts to downsize its manufacturing units in the USA, Finland and France in order to streamline costs and reduce overcapacity. Metso Minerals will continue to streamline operations at its crushing equipment plant in Tampere, Finland and its plants in Milwaukee, Wisconsin, USA; and Mâcon, France; at its headquarters and in its sales and maintenance network. Production of heavy-duty mining crushers and other products will cease at the Milwaukee plant by the end of June 2004. This decision will affect approximately 100 employees. Manufacturing will be transferred to other Metso units and partly outsourced to North American subcontractors. Sales, marketing and R&D functions will continue in Milwaukee.
Editor Roisin Reidy Elsevier Advanced Technology PO Box 150 Kidlington Oxford OX5 1AS United Kingdom Tel: +44 (0)1865 843695 Fax: +44 (0)1865 843971 E-mail: [email protected] Web: www.worldpumps.com Permissions may be sought directly from Elsevier Rights & Permissions Department, PO Box 800, Oxford OX5 1DX, UK; phone: (+44) 1865 843830, fax: (+44) 1865 853333, e-mail: permissions @elsevier.com. You may also contact Rights & Permissions directly through Elsevier’s home page (http://www.elsevier.nl), selecting first ‘Customer Support’, then ‘General Information’, then Permissions Query Form’. In the USA, users may clear permissions and make payments through the Copyright Clearance Center, Inc., 222 Rosewood Drive, Danvers, MA 01923, USA; phone: (978) 7508400, fax: (978) 7504744, and in the UK through the Copyright Licensing Agency Rapid Clearance Service (CLARCS), 90 Tottenham Court Road, London W1P 0LP, UK; phone: (+44) 207 436 5931; fax: (+44) 207 436 3986. Other countries may have a local reprographic rights agency for payments. Derivative Works Subscribers may reproduce tables of contents or prepare lists of articles including abstracts for internal circulation within their institutions. Permission of the publisher is required for resale or distribution outside the institution. Permission of the publisher is required for all other derivative works, including compilations and translations. Electronic Storage or Usage Permission of the publisher is required to store or use electronically any material contained in this journal, including any article or part of an article. Contact the publisher at the address indicated. Except as outlined above, no part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without prior written permission of the publisher. Address permissions requests to: Elsevier Science Rights & Permissions Department, at the mail, fax and e-mail addresses noted above. Notice No responsibility is assumed by the Publisher for any injury and/or damage to persons or property as a matter of products liability, negligence or otherwise, or from any use or operation of any methods, products, instructions or ideas contained in the material herein. Because of rapid advances in the medical sciences, in particular, independent verification of diagnoses and drug dosages should be made. Although all advertising material is expected to conform to ethical (medical) standards, inclusion in this publication does not constitute a guarantee or endorsement of the quality or value of such product or of the claims made of it by its manufacturer.
02167 Printed by Mayfield Press (Oxford) Limited, UK.
NEWS
Pump Industry Analyst
VEOLIA TO SELL BULK OF USFILTER FOR 2BN
ITT ADDS TO WATER TREATMENT PORTFOLIO
STRONG ORGANIC GROWTH FOR SULZER PUMPS
Veolia Environnement (VE) intends to sell most of the businesses in its subsidiary USFilter to reduce its US$13 billion debt load. VE will sell USFilter’s Consumer & Commercial business and its combined Systems and Services & Products business, but will retain the Operating Services and Engineering & Construction division, which it says is more aligned with its core business of long-term service contracts with municipalities and industries. USFilter’s Consumer & Commercial division comprises Culligan and Everpure, which operate in the residential and commercial water treatment sectors and have annual sales of more than US$740 million. The USFilter Systems and Services & Products business is the largest water and wastewater treatment equipment and associated services company in the world, with annual revenues of US$1.2 billion, and an installed base of thousands of installations. “As VE more precisely defined their strategic focus around long-term operating contracts, much of the USFilter business scope fell outside of their definition,” said Andy Seidel, CEO of USFilter. Seidel estimates that it could take up to a year to find a buyer. VE, formerly Vivendi Environnement, was spun off from media group Vivendi Universal this year. It acquired USFilter four years ago for almost US$8.5 billion including debt. The sale of the USFilter assets continues efforts to reverse a costly series of acquisitions undertaken by former Vivendi Universal chief JeanMarie Messier. VE has already raised about 2 billion from the sale of USFilter assets.
ITT Industries Inc is set to acquire Wedeco AG Water Technology, the German manufacturer of ozone oxidation and ultraviolet disinfection equipment. The US company intends to offer 18 per Wedeco share in cash, which is a 36% premium over the three-month average closing price. The offer values Wedeco at 233.1 million, including the assumption of 34.3 million in net debt. Once the deal is completed, Wedeco will become part of ITT Fluid Technology’s Sanitaire division. Robert Ayers, president of ITT Fluid Technology, said that the acquisition gives ITT a unique opportunity to further round out its water and wastewater treatment portfolio. He described Wedeco’s product line as a perfect complement to Sanitaire’s Biological and Filtration divisions, and said that the transaction follows ITT’s strategy of strengthening its businesses through strategic acquisitions of adjacent technologies. Wedeco, based in Düsseldorf, Germany, employs 800 people in seven manufacturing facilities - two in Germany, and one each in the USA, France, Italy, Hungary and South Korea. The company reported 2002 full-year revenues of 134 million, and operating income of 13.1 million. Wedeco CEO Werner Klink said that in founding the company he had a vision to change the paradigm of the water treatment industry. “This transaction, the resources of ITT and the proven leadership of our current CFO Christoph Dicks as my successor and new CEO of Wedeco make me very confident that I have achieved my goal.”
Order intake for Sulzer Pumps rose 24% in the third quarter. For the first nine months order volume rose 12% to SFr747 million in local currencies, while nominal growth was 3%. While Asia remains buoyant, the North American market continues to disappoint.
16
METSO MINERALS TO CLOSE COLORADO PLANT Metso Minerals is to shut down its minerals processing equipment and pump plant based in Colorado Springs, Colorado, USA. A plant producing mining and crushing equipment and screens in Ketsch, Germany will also be closed. The two units currently employ 190 people. The plant closures are part of Metso Minerals’ efforts to downsize its manufacturing units in the USA, Finland and France in order to streamline costs and reduce overcapacity. Metso Minerals will continue to streamline operations at its crushing equipment plant in Tampere, Finland and its plants in Milwaukee, Wisconsin, USA; and Mâcon, France; at its headquarters and in its sales and maintenance network. Production of heavy-duty mining crushers and other products will cease at the Milwaukee plant by the end of June 2004. This decision will affect approximately 100 employees. Manufacturing will be transferred to other Metso units and partly outsourced to North American subcontractors. Sales, marketing and R&D functions will continue in Milwaukee.
Editor Roisin Reidy Elsevier Advanced Technology PO Box 150 Kidlington Oxford OX5 1AS United Kingdom Tel: +44 (0)1865 843695 Fax: +44 (0)1865 843971 E-mail: [email protected] Web: www.worldpumps.com Permissions may be sought directly from Elsevier Rights & Permissions Department, PO Box 800, Oxford OX5 1DX, UK; phone: (+44) 1865 843830, fax: (+44) 1865 853333, e-mail: permissions @elsevier.com. You may also contact Rights & Permissions directly through Elsevier’s home page (http://www.elsevier.nl), selecting first ‘Customer Support’, then ‘General Information’, then Permissions Query Form’. In the USA, users may clear permissions and make payments through the Copyright Clearance Center, Inc., 222 Rosewood Drive, Danvers, MA 01923, USA; phone: (978) 7508400, fax: (978) 7504744, and in the UK through the Copyright Licensing Agency Rapid Clearance Service (CLARCS), 90 Tottenham Court Road, London W1P 0LP, UK; phone: (+44) 207 436 5931; fax: (+44) 207 436 3986. Other countries may have a local reprographic rights agency for payments. Derivative Works Subscribers may reproduce tables of contents or prepare lists of articles including abstracts for internal circulation within their institutions. Permission of the publisher is required for resale or distribution outside the institution. Permission of the publisher is required for all other derivative works, including compilations and translations. Electronic Storage or Usage Permission of the publisher is required to store or use electronically any material contained in this journal, including any article or part of an article. Contact the publisher at the address indicated. Except as outlined above, no part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without prior written permission of the publisher. Address permissions requests to: Elsevier Science Rights & Permissions Department, at the mail, fax and e-mail addresses noted above. Notice No responsibility is assumed by the Publisher for any injury and/or damage to persons or property as a matter of products liability, negligence or otherwise, or from any use or operation of any methods, products, instructions or ideas contained in the material herein. Because of rapid advances in the medical sciences, in particular, independent verification of diagnoses and drug dosages should be made. Although all advertising material is expected to conform to ethical (medical) standards, inclusion in this publication does not constitute a guarantee or endorsement of the quality or value of such product or of the claims made of it by its manufacturer.
02167 Printed by Mayfield Press (Oxford) Limited, UK.