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Clarcor to acquire GE's air filtration business
filtration
industryANALYST ISSN 1365-6937 November 2013
www.filtrationindustryanalyst.com
Siemens sells Water Technologies business to US private equity firm for E640mn
S
iemens has agreed to sell its Water Technologies business unit to New York-based private equity specialist AEA Investors LP in a deal valued at E640 million (see Filtration Industry Analyst, November 2012). The sale includes Siemens Water Technologies’ municipal, industrial and services water and wastewater treatment operations and assets. The existing Water Technologies management, including CEO Dr Lukas Loeffler, will remain under AEA ownership, and the business will continue to focus on municipal and industrial water and wastewater treatment equipment and services. “We look forward to a new chapter of increased entrepreneurship, flexibility and growth for Water Technologies,” said Dr Loeffler. “Together with AEA, we will continue building on our wide range of enduring brands and advanced water and wastewater treatment technologies to help our customers more cost-effectively meet their water needs now and in the future.” “We are excited to be partnering with one of the leaders in the global water industry and are supportive of management and their plan to continue to grow the business,” said AEA managing partner Brian Hoesterey. Siemens will now focus its water business on automation and drive solutions for the operation of water and sewage treatment and seawater desalination plants.
“At Siemens, we will in the future be focusing our water business on solutions in line with our electro technical core competencies in automation and drive technologies,” said Siegfried Russwurm, member of Siemens’ managing board and CEO of the company’s Industry Sector. The sale does not include Siemens Water Solutions, which is part of the Siemens Energy Sector, Oil & Gas business, providing water and wastewater treatment solutions to the oil and gas market. Products staying with Siemens include Zimpro wet air oxidation, Vorsep, Spinsep, Veirsep, Cyclosep and Combosep flotation systems for produced water treatment, Hydrocell and Quadricell induced gas flotation systems, hydrocyclones, corrugated plate separators, media filters, including AutoShell and Monosep walnut shell filters, API separators, DAF/DGF separators, Petro MBR systems, EcoRight MBR systems and offshore UF technologies. Siemens Energy will also retain the oil & gas flowback and offshore reverse osmosis (RO) services business. For further information, visit www.siemens.com and www.aeainvestors.com
COMMENT While the For Sale sign comes down on its Water Technologies unit, Siemens remains very much involved in the filtration and separation sector through its Water Solutions business. ■
Clarcor to acquire GE’s air filtration business
C
larcor Inc has entered into an agreement to acquire the air filtration business of General Electric Co’s Power and Water division for approximately US$265 million.
Headquartered in Overland Park, Kansas and with manufacturing operations in Missouri, the UK and China, the business supplies air filtration systems and filters Continued on page 2...
Contents Company Profile Calgon Carbon GUD
7 8
Company Watch Cummins Entegris Nederman Pentair Sartorius Xylem
9 9 10 10 11 11
Diary
15
Dividends
5
Exchange Rates
16
Financial Calendar
14
New Product Developments
14
News Siemens sells Water Technologies business to US private equity firm for E640mn Clarcor to acquire GE’s air filtration business Cigarette paper maker Schweitzer-Mauduit moves into filtration by acquiring DelStar Baird Capital buys Kason Porex sale to Filtration Group completed Hollingsworth & Vose to manufacture Technostat media in US Toray to take majority stake in Woongjin Chemical ProSep assets sold to Produced Water Absorbents PECOFacet expands in the Middle East Pentair reaches out to the Philippines Pervatech purchases Dutch ceramic disc manufacturer Coal company agrees technology transfer with Taiwanese university Xylem Watermark supports Typhoon Haiyan survivors New brand aims to increase Champion’s penetration in EMEA Xebec looks to list on TSX Venture Exchange Calgon Carbon completes US$300mn syndicated credit facility Modern Water opens for business in China Sulzer unveils new operational structure H2O Innovation adds pipe coupling producer to portfolio Polymer Group seals Fiberweb acquisition Mann+Hummel invests in US operations
6 16 16
Orders & Contracts
13
People & Appointments
12
Stock Watch
15
1 1 2 2 3 3 4 4 4 4 4 5 5 5 5 6 6 6
ISSN 1365-6937/13 © 2013 Elsevier Ltd. All rights reserved. This journal and the individual contributions contained in it are protected under copyright by Elsevier Ltd, and the following terms and conditions apply to their use: Photocopying Single photocopies of single articles may be made for personal use as allowed by national copyright laws. Permission of the publisher and payment of a fee is required for all other photocopying, including multiple or systematic copying, copying for advertising or promotional purposes, resale, and all forms of document delivery. Special rates are available for educational institutions that wish to make photocopies for non-profit educational classroom use.
INDEX/NEWS
Filtration Company AAF International Affinia Ahlstrom Alfa Laval Amiad Andritz Asahi Kasei BASF Bilfinger BioteQ BluMetric Environmental Cabot Calgon Carbon Cantel Medical CECO Environmental Champion Laboratories Clarcor Crane Cummins DelStar Desalitech Donaldson Dow Water & Process Solutions DSS DuPont Eaton Entegris Esco Technologies Fiberweb Filtration Group FLSmidth GE GE Power & Water GEA GLV GUD Holdings H2O Innovation Hollingsworth & Vose Hydro International Hyflux ItN Nanovation ITT Kason Lanxess Lindsay Lydall 3M Mann+Hummel Memstar memsys Merck Metso MFRI Modern Water Mycelx Technologies NanoH2O Nederman Nitto Outotec Pall Parker Hannifin PECOFacet Pentair Pervatech PGI PMFG Polypore Porex Porvair ProSep Puradyn QUA Sartorius Seychelle Environmental Siemens Siemens Water Technologies SKF SPX Sulzer Sulzer Chemtech Tomoe Engineering Toray Toyobo United Envirotech Veolia Water Watts Water Xebec Adsorption Xylem
2
Filtration Industry Analyst
14 12 14,15 13,14,15 15 14,15 15 14 15 13 12,15 5 6,7 15 5,15 5 1,4,15 15 5,9,15 2 13 5,15 13,14 13 15 5,15 9,15 15 15 3 14,15 1,13,14,15 1 15 15 8,14,15 6,15 3 12 12,15 15 15 2 14 15 15 5,15 16 15 12 14,15 14 15 6 15 13 10,13,15 15 14,15 15 5,15 4 4,10,15 4 16 13,15 15 3 14,15 4 15 14 11,14,15 15 1,14 1 14 15 6,14,15 6 15 4,15 15 15 13 15 5 5,11,15
...Continued from front page used in gas turbine applications, as well as industrial air filtration products and membranes. It has more than 700 employees and trailing 12 month annual revenues of approximately US$230 million. Under Clarcor ownership, the business will continue to supply gas turbine air inlet filtration systems and filters to GE under a multi-year supply agreement. “Each element of this business – gas turbine filtration, industrial air filtration, and membranes – is attractive and fits within our core strategies and competencies,” said Clarcor chairman, president and CEO Christopher Conway. “With this transaction, Clarcor will become a leading designer and supplier of air inlet filtration products for natural gas turbines, a business we believe is poised for long-term growth as the world continues to shift toward natural gas as its energy source of choice. Clarcor traditionally has had little presence in the gas turbine business, and we believe this transaction will immediately position Clarcor as a major player in the space and provide a strong platform from which to grow, both with respect to first-fit applications as well as the aftermarket.” “The Air Filtration business has strengthened its operations and improved performance over the past two years to create a worldclass filtration business,” said Victor Abate, president and CEO of GE Power & Water’s Power Generation Products. “In the Power Generation segment, we are focused on our core gas turbine technology, and we have made the strategic decision to simplify the business to better match our core strengths. We are pleased that the transaction with Clarcor will allow Air Filtration the opportunity to grow and thrive in the filtration industry.” The transaction is expected to close by the end of this year. For further information, visit www.clarcor.com and www.ge-energy.com/filtration
Cigarette paper maker Schweitzer-Mauduit moves into filtration by acquiring DelStar
S
pecialty paper producer Schweitzer-Mauduit International Inc (SWM) has signed a definitive agreement to acquire DelStar Inc in a US$231.5 million cash deal.
DelStar, a portfolio company of investment firm American Capital Strategies, is a custom manufacturer of plastic and metal components used in filtration. Products include extruded netting, apertured films, meltblown media and extruded cores. Headquartered in Middletown, Delaware, DelStar has annual revenue of US$110 million. Seventy percent of DelStar’s revenue comes from filtration products, with the majority from reverse osmosis and other water filtration applications, and the remainder from other specialty industrial filtration applications. The company has a broad customer base in fast-growing water and industrial filtration segments, as well as in healthcare. “The acquisition of DelStar creates an attractive growth platform in an adjacent business area for SWM as we greatly expand our presence in advanced materials, focused in large part on filtration,” said Frederic Villoutreix, chairman and CEO of SWM. “This combination offers substantial opportunities to co-develop composite materials, bring paper-based filtration products to DelStar’s broad customer base, and leverage SWM’s global infrastructure and capital to support accelerated growth efforts for the DelStar franchise. Although attractive purely on a standalone basis, DelStar is an ideal cornerstone acquisition on which we can build a meaningful critical components platform with a focus on filtration.” Mark Abrahams, DelStar president and CEO, said: “We could not be more pleased with SWM’s choice to bring DelStar Technologies into their family. The combined resources of both enterprises will strengthen our ability to pursue promising opportunities in our base business as well as potential acquisitions. Together, I know we can deliver innovative advanced solutions to our diverse customer base.” SWM, which is the world’s largest producer of cigarette papers, says that it remains highly committed to its core tobacco operations and customers, and that tobacco will continue to represent the majority of its assets, revenue and cash flow. For further information, visit www.swmintl.com, www.delstarinc.com and www.americancapital.com
Baird Capital buys Kason
B
aird Capital’s US Private Equity group has bought Kason Corp, a
November 2013
industryANALYST ISSN 1365-6937 November 2013
www.filtrationindustryanalyst.com
Siemens sells Water Technologies business to US private equity firm for E640mn
S
iemens has agreed to sell its Water Technologies business unit to New York-based private equity specialist AEA Investors LP in a deal valued at E640 million (see Filtration Industry Analyst, November 2012). The sale includes Siemens Water Technologies’ municipal, industrial and services water and wastewater treatment operations and assets. The existing Water Technologies management, including CEO Dr Lukas Loeffler, will remain under AEA ownership, and the business will continue to focus on municipal and industrial water and wastewater treatment equipment and services. “We look forward to a new chapter of increased entrepreneurship, flexibility and growth for Water Technologies,” said Dr Loeffler. “Together with AEA, we will continue building on our wide range of enduring brands and advanced water and wastewater treatment technologies to help our customers more cost-effectively meet their water needs now and in the future.” “We are excited to be partnering with one of the leaders in the global water industry and are supportive of management and their plan to continue to grow the business,” said AEA managing partner Brian Hoesterey. Siemens will now focus its water business on automation and drive solutions for the operation of water and sewage treatment and seawater desalination plants.
“At Siemens, we will in the future be focusing our water business on solutions in line with our electro technical core competencies in automation and drive technologies,” said Siegfried Russwurm, member of Siemens’ managing board and CEO of the company’s Industry Sector. The sale does not include Siemens Water Solutions, which is part of the Siemens Energy Sector, Oil & Gas business, providing water and wastewater treatment solutions to the oil and gas market. Products staying with Siemens include Zimpro wet air oxidation, Vorsep, Spinsep, Veirsep, Cyclosep and Combosep flotation systems for produced water treatment, Hydrocell and Quadricell induced gas flotation systems, hydrocyclones, corrugated plate separators, media filters, including AutoShell and Monosep walnut shell filters, API separators, DAF/DGF separators, Petro MBR systems, EcoRight MBR systems and offshore UF technologies. Siemens Energy will also retain the oil & gas flowback and offshore reverse osmosis (RO) services business. For further information, visit www.siemens.com and www.aeainvestors.com
COMMENT While the For Sale sign comes down on its Water Technologies unit, Siemens remains very much involved in the filtration and separation sector through its Water Solutions business. ■
Clarcor to acquire GE’s air filtration business
C
larcor Inc has entered into an agreement to acquire the air filtration business of General Electric Co’s Power and Water division for approximately US$265 million.
Headquartered in Overland Park, Kansas and with manufacturing operations in Missouri, the UK and China, the business supplies air filtration systems and filters Continued on page 2...
Contents Company Profile Calgon Carbon GUD
7 8
Company Watch Cummins Entegris Nederman Pentair Sartorius Xylem
9 9 10 10 11 11
Diary
15
Dividends
5
Exchange Rates
16
Financial Calendar
14
New Product Developments
14
News Siemens sells Water Technologies business to US private equity firm for E640mn Clarcor to acquire GE’s air filtration business Cigarette paper maker Schweitzer-Mauduit moves into filtration by acquiring DelStar Baird Capital buys Kason Porex sale to Filtration Group completed Hollingsworth & Vose to manufacture Technostat media in US Toray to take majority stake in Woongjin Chemical ProSep assets sold to Produced Water Absorbents PECOFacet expands in the Middle East Pentair reaches out to the Philippines Pervatech purchases Dutch ceramic disc manufacturer Coal company agrees technology transfer with Taiwanese university Xylem Watermark supports Typhoon Haiyan survivors New brand aims to increase Champion’s penetration in EMEA Xebec looks to list on TSX Venture Exchange Calgon Carbon completes US$300mn syndicated credit facility Modern Water opens for business in China Sulzer unveils new operational structure H2O Innovation adds pipe coupling producer to portfolio Polymer Group seals Fiberweb acquisition Mann+Hummel invests in US operations
6 16 16
Orders & Contracts
13
People & Appointments
12
Stock Watch
15
1 1 2 2 3 3 4 4 4 4 4 5 5 5 5 6 6 6
ISSN 1365-6937/13 © 2013 Elsevier Ltd. All rights reserved. This journal and the individual contributions contained in it are protected under copyright by Elsevier Ltd, and the following terms and conditions apply to their use: Photocopying Single photocopies of single articles may be made for personal use as allowed by national copyright laws. Permission of the publisher and payment of a fee is required for all other photocopying, including multiple or systematic copying, copying for advertising or promotional purposes, resale, and all forms of document delivery. Special rates are available for educational institutions that wish to make photocopies for non-profit educational classroom use.
INDEX/NEWS
Filtration Company AAF International Affinia Ahlstrom Alfa Laval Amiad Andritz Asahi Kasei BASF Bilfinger BioteQ BluMetric Environmental Cabot Calgon Carbon Cantel Medical CECO Environmental Champion Laboratories Clarcor Crane Cummins DelStar Desalitech Donaldson Dow Water & Process Solutions DSS DuPont Eaton Entegris Esco Technologies Fiberweb Filtration Group FLSmidth GE GE Power & Water GEA GLV GUD Holdings H2O Innovation Hollingsworth & Vose Hydro International Hyflux ItN Nanovation ITT Kason Lanxess Lindsay Lydall 3M Mann+Hummel Memstar memsys Merck Metso MFRI Modern Water Mycelx Technologies NanoH2O Nederman Nitto Outotec Pall Parker Hannifin PECOFacet Pentair Pervatech PGI PMFG Polypore Porex Porvair ProSep Puradyn QUA Sartorius Seychelle Environmental Siemens Siemens Water Technologies SKF SPX Sulzer Sulzer Chemtech Tomoe Engineering Toray Toyobo United Envirotech Veolia Water Watts Water Xebec Adsorption Xylem
2
Filtration Industry Analyst
14 12 14,15 13,14,15 15 14,15 15 14 15 13 12,15 5 6,7 15 5,15 5 1,4,15 15 5,9,15 2 13 5,15 13,14 13 15 5,15 9,15 15 15 3 14,15 1,13,14,15 1 15 15 8,14,15 6,15 3 12 12,15 15 15 2 14 15 15 5,15 16 15 12 14,15 14 15 6 15 13 10,13,15 15 14,15 15 5,15 4 4,10,15 4 16 13,15 15 3 14,15 4 15 14 11,14,15 15 1,14 1 14 15 6,14,15 6 15 4,15 15 15 13 15 5 5,11,15
...Continued from front page used in gas turbine applications, as well as industrial air filtration products and membranes. It has more than 700 employees and trailing 12 month annual revenues of approximately US$230 million. Under Clarcor ownership, the business will continue to supply gas turbine air inlet filtration systems and filters to GE under a multi-year supply agreement. “Each element of this business – gas turbine filtration, industrial air filtration, and membranes – is attractive and fits within our core strategies and competencies,” said Clarcor chairman, president and CEO Christopher Conway. “With this transaction, Clarcor will become a leading designer and supplier of air inlet filtration products for natural gas turbines, a business we believe is poised for long-term growth as the world continues to shift toward natural gas as its energy source of choice. Clarcor traditionally has had little presence in the gas turbine business, and we believe this transaction will immediately position Clarcor as a major player in the space and provide a strong platform from which to grow, both with respect to first-fit applications as well as the aftermarket.” “The Air Filtration business has strengthened its operations and improved performance over the past two years to create a worldclass filtration business,” said Victor Abate, president and CEO of GE Power & Water’s Power Generation Products. “In the Power Generation segment, we are focused on our core gas turbine technology, and we have made the strategic decision to simplify the business to better match our core strengths. We are pleased that the transaction with Clarcor will allow Air Filtration the opportunity to grow and thrive in the filtration industry.” The transaction is expected to close by the end of this year. For further information, visit www.clarcor.com and www.ge-energy.com/filtration
Cigarette paper maker Schweitzer-Mauduit moves into filtration by acquiring DelStar
S
pecialty paper producer Schweitzer-Mauduit International Inc (SWM) has signed a definitive agreement to acquire DelStar Inc in a US$231.5 million cash deal.
DelStar, a portfolio company of investment firm American Capital Strategies, is a custom manufacturer of plastic and metal components used in filtration. Products include extruded netting, apertured films, meltblown media and extruded cores. Headquartered in Middletown, Delaware, DelStar has annual revenue of US$110 million. Seventy percent of DelStar’s revenue comes from filtration products, with the majority from reverse osmosis and other water filtration applications, and the remainder from other specialty industrial filtration applications. The company has a broad customer base in fast-growing water and industrial filtration segments, as well as in healthcare. “The acquisition of DelStar creates an attractive growth platform in an adjacent business area for SWM as we greatly expand our presence in advanced materials, focused in large part on filtration,” said Frederic Villoutreix, chairman and CEO of SWM. “This combination offers substantial opportunities to co-develop composite materials, bring paper-based filtration products to DelStar’s broad customer base, and leverage SWM’s global infrastructure and capital to support accelerated growth efforts for the DelStar franchise. Although attractive purely on a standalone basis, DelStar is an ideal cornerstone acquisition on which we can build a meaningful critical components platform with a focus on filtration.” Mark Abrahams, DelStar president and CEO, said: “We could not be more pleased with SWM’s choice to bring DelStar Technologies into their family. The combined resources of both enterprises will strengthen our ability to pursue promising opportunities in our base business as well as potential acquisitions. Together, I know we can deliver innovative advanced solutions to our diverse customer base.” SWM, which is the world’s largest producer of cigarette papers, says that it remains highly committed to its core tobacco operations and customers, and that tobacco will continue to represent the majority of its assets, revenue and cash flow. For further information, visit www.swmintl.com, www.delstarinc.com and www.americancapital.com
Baird Capital buys Kason
B
aird Capital’s US Private Equity group has bought Kason Corp, a
November 2013