Andritz to acquire centrifuge repairer

Andritz to acquire centrifuge repairer

Industry news Filtration+Separation December 2006 H2O closes acquisition of Membrane Systems Corp H2O Innovation Inc has announced the closing, on O...

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Industry news

Filtration+Separation December 2006

H2O closes acquisition of Membrane Systems Corp H2O Innovation Inc has announced the closing, on October 1, 2006, of the acquisition of substantially all assets of Membrane Systems Corp (MSC) by Membrane Systems Inc, a new wholly-owned subsidiary of H2O incorporated under the laws of the State of Delaware, USA following the US$2,875,000 purchase at the beginning of September. This acquisition will include a business place in San Diego, California, USA, heart of the membrane technology development or the so called “Membrane Valley” and new sales and business opportunities for H2O in the United States, said to be the largest growing market for water treatment technologies in the Americas. On an unaudited basis for the six-month period ended on June 30, 2006, MSC had sales of

US$4,312,456 and net earnings of US$477,362, sales backlog of approximately US$5,000,000 and a track record of more than 100 municipal and industrial water treatment systems installed in the United States.

industry within a growing North American market,” Goulet added. “We intend to continue to expand our market reach through a growth of our distribution network and other targeted acquisitions.”

“This transaction entitles H2O to strengthen its position in the water treatment industry. MSC will enable H2O to access US based market as well as an impressive reference list of projects,” explains Guy Goulet, president and CEO of H2O. “This strategic acquisition, in addition to contributing towards growth of MSC, is expected to increase significantly the revenues of H2O, enlarge H2O’s customer base and leverage its expertise in the membrane sector.”

“This acquisition meets every criteria of our strategic business plan which consists in the consolidation of related technologies in the water treatment industry,” added Frédéric Dugré, executive vice-president of H2O. “In fact, considering the strength of the Canadian dollar, the timing could not be better to contemplate business development in the United States. The membrane filtration technology on the American market is subject to an important growth. Moreover, the acquisition remains within the bounds of our company’s mission and products.”

“H2O [...] intends to rely on MSC’s notoriety and expertise to position itself as a significant player in the water treatment

www.h2oinnovation.com

BCC predicts US$2.1 billion US market for drinking water in 2011 According to BCC’s updated technical market research report, Advanced Technologies for Municipal Water Treatment

(MST036B) the US market for the advanced drinking water technologies is estimated at about US$1.3 billion in 2006 and growing at a combined average annual growth rate (AAGR) of 10.7% to 2011 to more than US$2.1 billion. These technologies include membrane filtration, ozone disinfection, UV irradiation and novel oxidation processes. Combined, the five membrane treatments for municipal drinking water are valued at US$1 billion in 2006, with a predicted combined growth rate of 10.3%. UV

disinfection, a market valued at US$29.2 million, should experience considerable growth in the forecast period. A 38.6% AAGR is predicted to 2011, when the market will reach more than US$149 million. According to the US Environmental Protection Agency (EPA), all 50 US states and Puerto Rico invested nearly US$9.5 billion in drinking water improvements from 1996 to 2005. In their 2005 annual report, the USbased Water and Wastewater Equipment Manufacturers Association (WWEMA) reported market growth in the industry of at least 5%, with 78% of WWEMA manufacturers seeing and projecting 10%+ growth. These increases are primarily in the US market with international sales, as a whole, remaining fairly flat. www.bccresearch.com

Oilfield desal technology licensed Texas A&M University has agreed to commercialise a desalination process technology with GeoPure Water Technologies LLC. The technology, which was developed by the A&M System researchers, is designed to provide quality drinking water from brine produced during petroleum drilling, stimulation and production operations. The technology was developed by a joint venture between industry, the US government and a team of researchers from GPRI, the Texas Water Resources Institute, the Harold Vance Department of Petroleum Engineering and the Institute for Food Science and Engineering at Texas A&M developed the technology. GeoPure will offer the GPRI Design Desalination Technology to the petroleum industry for the effective resource management of produced water in oil and gas operations. www.tamu.edu

Andritz to acquire centrifuge repairer International Technology Group Andritz, a supplier of solid/liquid separation equipment for industrial and municipal applications, has signed an agreement to purchase Contec Decanter Inc. based in California, USA. The purchase price was not disclosed. Contec specialises in the repair and maintenance of centrifuges and separators for various industries and has annual sales of approximately 3 million. With this acquisition, Andritz has added a service centre for centrifuges and separators on the west coast of the USA to its network of existing service centres in the USA, Europe, and Asia. This will enable Andritz to better and faster serve local customers and to strengthen its leading position in servicing centrifuge installations, the company says. www.andritz.com

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