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Mergers & Acquisitions Review 2016
MERGERS & ACQUISITIONS REVIEW
T
Mergers & Acquisitions Review 2016
he filtration and separation sector saw a steady stream of M&A deals during 2016. While the year got off to a slower than usual start, the pace of M&A activity picked up as the year progressed. The transactions completed during the first and second quarters of 2016 are covered here, while those finalised in the second half of the year will be featured in the February 2017 issue of Filtration Industry Analyst.
First quarter 2016 Company
Activity
Comment
KBR Inc
Acquired Chematur Ecoplanning Oy, Plinke GmbH and Weatherly Inc from Sweden’s Chematur Technologies AB in a US$24.5 million deal (see Filtration Industry Analyst, January 2016). Finland-based Ecoplanning offers proprietary evaporation and crystallisation technologies. Germany’s Plinke specialises in proprietary technology and specialist equipment for the purification and concentration of inorganic acids used or produced in hydrocarbon processing facilities worldwide. Weatherly is a North American company that provides nitric acid and ammonium nitrate proprietary technologies and services to the fertilizer market.
KBR sees opportunities to extend these technologies outside North America to new customers. www.kbr.com, www.chematur.se, www.ecoplanning.fi, www.plinke.de and www.weatherlyinc.com
MFRI Inc
Announced that it was exiting the filtration sector, with the sale of TDC Filter Manufacturing Inc to Clarcor Inc, and Nordic Air Filtration A/S to Hengst Holding GmbH (see Filtration Industry Analyst, February 2016). Later in the year, MFRI wound down its filter bag business in Winchester, Virginia, USA.
The move away from filtration is designed to refocus MFRI’s business on a wider variety of specialty piping markets. www.mfri.com, www.midwesco-tdcfilter.com, www.nordic-air-filtration.com, www.clarcor.com and www.hengst.com
Bilfinger
Divested its Water Technologies division to Chinese company Chengdu Techcent Environment Group (see Filtration Industry Analyst, February and April 2016). The Water Technologies division, which had a turnover of E300 million in 2015 and employs about 1600 people, specialises in water and wastewater management, screening and filtration technologies for separating solids from liquids and gases, as well as vacuum technology. Products and services are marketed under the Airvac, Diemme Filtration, Geiger, Johnson Screens, Noggerath, Passavant and Roediger brand names.
Bilfinger received net proceeds of E200 million from the sale. The Water Technologies business has since been renamed Aqseptence Group. www.bilfinger.com, www.tbhic.cn and www.aqseptence.com
Consolidated Water Co Ltd
Secured a 51% interest in Aerex Industries Inc for US$7.7 million in cash (see Filtration Industry Analyst, February 2016). Aerex, which conducts business as Aerex Global Water Solutions, is an original equipment manufacturer and provider of products and services applicable to municipal water treatment and industrial water and wastewater treatment. The company’s products include membrane separation equipment, filtration equipment, piping systems, vessels and custom fabricated components.
Consolidated Water says that the acquisition of a majority interest in Aerex represents an important first step of the expansion of its business model into other water-related industries and markets. www.cwco.com and www.aerexglobal.com
Second quarter 2016 Company
Activity
Comment
Daikin Industries Ltd/American Air Filter Co Inc (AAF)
Purchased US air filter manufacturer Flanders Holdings LLC in a US$430 million deal (see Filtration Industry Analyst, February 2016). Washington, North Carolinaheadquartered Flanders specialises in residential and industrial air filtration. The company, which had sales of US$298 million in 2015 and employs 2700 people, was acquired by Insight Equity Holdings LLC in 2012.
Daikin says that Flanders will enable AAF to develop high value-added products including products used for cleanrooms in the pharmaceutical and food processing sectors. The acquisition of Flanders means filters will now be a core Daikin business along with air conditioning and chemicals. www.daikin.com, www.aafintl.com, www.flanderscorp. com and www.insightequity.com
Suez
Took a majority stake in Driplex, an Indian company that provides water treatment solutions for industrial customers in India and overseas (see Filtration Industry Analyst, January 2016). Founded in 1974 and headquartered in New Delhi, Driplex specialises in engineering, design, manufacturing and commissioning of effluent and process water treatment plants for the power, oil & gas and other industrial sectors. The company has more than 350 employees.
The investment in Driplex is in line with Suez’s strategy to develop its industrial activity and its business internationally. www.suez-environnement.com and www.driplexwater.com
January 2017
Filtration Industry Analyst
5
MERGERS & ACQUISITIONS REVIEW Second quarter 2016 Continued... Company
Activity
Comment
Veolia
Bought Kurion, the California-based specialist in nuclear waste cleanup technology, for US$350 million (see Filtration Industry Analyst, February 2016). Kurion’s activities cover separation, stabilization and robotics for access to restricted areas.
Under Veolia, Kurion hopes to accelerate its growth trajectory while expanding its markets and commercial offerings. www.veolia.com and www.kurion.com
Evoqua Water Technologies
Completed its acquisition of Neptune Benson, a US manufacturer of water filtration and disinfection products for recreational, industrial and municipal water markets (see Filtration Industry Analyst, March and April 2016).
Neptune Benson brings a portfolio of strong brands and technologies and appears to fit well with Evoqua Water Technologies’ ambitious growth plans. www.evoqua.com and www.neptunebenson.com
Hitachi Ltd
Merged its Singapore-based subsidiaries Hitachi Aqua-Tech Engineering Pte Ltd and Aqua Works and Engineering Pte Ltd (see Filtration Industry Analyst, March 2016). Hitachi Aqua-Tech Engineering handles the design, manufacturing, sales and maintenance of reverse osmosis (RO) membrane systems, while Aqua Works and Engineering Pte Ltd is an engineering company focused on water related facilities for condominiums as well as commercial and public facilities.
The merger is designed to strengthen Hitachi’s Water and Environmental Solutions business targeting resorts, commercial facilities and high-rise condominiums in Asia and island countries. Hitachi Aqua-Tech will aim for 2018 revenues of approximately S$38 million in Asia and island countries, with a particular focus on Singapore and the Maldives. www.hitachi.com
The Dow Chemical Co
Invested in OxyMem Ltd, a University College Dublin spinout company based in Athlone, Ireland, that has been commercialising a membrane aerated biofilm reactor (MABR) for wastewater treatment (see Filtration Industry Analyst, April 2016).
The investment will accelerate the commercialisation of OxyMem’s MABR technology, which the company says reduces energy consumption for aeration by up to 75%. www.dow.com and www.oxymem.com
Camfil AB
Strengthened its market position in Finland with the acquisition of F-Suotimet Oy, a Finnish family business that specialises in the manufacture and sale of ventilation filters and filter components (see Filtration Industry Analyst, April 2016). Based in Loimaa, in southwest Finland, Suotimet had a turnover of E5.5 million in 2015.
Camfil says that both companies share the same air filtration values. www.camfil.com and www.fsuotimet.fi
Schlumberger Ltd
Sealed its merger with Cameron International Corp (see Filtration Industry Analyst, April 2016).
The deal combines two complementary technology portfolios, bringing together Schlumberger reservoir and well technology with Cameron wellhead and surface equipment, flow control and processing technology. http://cameron.slb.com, www.slb.com and www.c-a-m.com
Rexnord
Closed the acquisition of Cambridge International Holdings Corp, in a US$210 million deal (see Filtration Industry Analyst, May 2016). Cambridge designs, manufactures and installs metal conveyor belts, architectural mesh and environmental filters. Based in Cambridge, Maryland, USA, the company has three divisions: Conveyor Belts; Architectural Mesh; and Filtration Systems. The Filtration Systems division, through Cambridge EnTech, supplies filtration screens and systems for power, manufacturing, wood processing, pulp & paper and wastewater treatment markets.
Rexnord said that Cambridge aligns well with its strategy to expand its presence in consumer-driven end markets. While Cambridge International will expand Rexnord’s presence in the global food and beverage markets, it also brings a strong filter business to the multi-platform industrial company. www.rexnord.com, www.cambridge-intl.com and www.cambridgeentech.com
Speyside Equity
Finalised the purchase of Opta Minerals Inc, a Canadian vertically integrated provider of custom process solutions and industrial mineral products used primarily in the steel, foundry, loose abrasive cleaning, water-jet cutting and municipal water filtration industries (see Filtration Industry Analyst, May 2016). Opta Minerals has production and distribution facilities throughout Canada and the US, as well as locations in France, Slovakia and Germany.
Speyside says that it has the right operational mindset and managerial discipline to complete the turnaround of Opta Minerals. www.speysideequity.com and www.optaminerals.com
Mann+Hummel
Completed its acquisition of the global filtration operations of Affinia Group, manufacturer of the Wix and Filtron filter brands (see Filtration Industry Analyst, May 2016). Affinia’s filtration business specialises in the oil, fuel, hydraulic and coolant filter aftermarket.
Mann+Hummel says that the addition of the Wix and Filtron brands strengthens its global presence with an expanded product portfolio and access to new markets. www.mann-hummel.com
Parkson
Acquired the assets and hired the employees of FilterONE USA LLC (see Filtration Industry Analyst, June 2016).
This acquisition further bolsters Parkson’s aftermarket parts and services business and brings significant market and product knowledge to the company, as well as a number of new products and product upgrade solutions. www.parkson.com and www.filteroneusa.com
Wilo SE
Expanded in sewage technology by retroactively taking over GVA (Gesellschaft für Verfahren der Abwassertechnik mbH & Co KG), a German company specialising in system technology and components for biological sewage treatment from 1 January 2016 (see Filtration Industry Analyst, June 2016). Founded in 1984, GVA is headquartered in Wülfrath and has a production plant in Sangerhausen. Products include aeration systems and agitators.
Wilo says that the acquisition of GVA is another important milestone in its development from a component supplier to a full-line system supplier for biological sewage treatment. www.wilo.com and www.gva-net.de
6
Filtration Industry Analyst
January 2017
T
Mergers & Acquisitions Review 2016
he filtration and separation sector saw a steady stream of M&A deals during 2016. While the year got off to a slower than usual start, the pace of M&A activity picked up as the year progressed. The transactions completed during the first and second quarters of 2016 are covered here, while those finalised in the second half of the year will be featured in the February 2017 issue of Filtration Industry Analyst.
First quarter 2016 Company
Activity
Comment
KBR Inc
Acquired Chematur Ecoplanning Oy, Plinke GmbH and Weatherly Inc from Sweden’s Chematur Technologies AB in a US$24.5 million deal (see Filtration Industry Analyst, January 2016). Finland-based Ecoplanning offers proprietary evaporation and crystallisation technologies. Germany’s Plinke specialises in proprietary technology and specialist equipment for the purification and concentration of inorganic acids used or produced in hydrocarbon processing facilities worldwide. Weatherly is a North American company that provides nitric acid and ammonium nitrate proprietary technologies and services to the fertilizer market.
KBR sees opportunities to extend these technologies outside North America to new customers. www.kbr.com, www.chematur.se, www.ecoplanning.fi, www.plinke.de and www.weatherlyinc.com
MFRI Inc
Announced that it was exiting the filtration sector, with the sale of TDC Filter Manufacturing Inc to Clarcor Inc, and Nordic Air Filtration A/S to Hengst Holding GmbH (see Filtration Industry Analyst, February 2016). Later in the year, MFRI wound down its filter bag business in Winchester, Virginia, USA.
The move away from filtration is designed to refocus MFRI’s business on a wider variety of specialty piping markets. www.mfri.com, www.midwesco-tdcfilter.com, www.nordic-air-filtration.com, www.clarcor.com and www.hengst.com
Bilfinger
Divested its Water Technologies division to Chinese company Chengdu Techcent Environment Group (see Filtration Industry Analyst, February and April 2016). The Water Technologies division, which had a turnover of E300 million in 2015 and employs about 1600 people, specialises in water and wastewater management, screening and filtration technologies for separating solids from liquids and gases, as well as vacuum technology. Products and services are marketed under the Airvac, Diemme Filtration, Geiger, Johnson Screens, Noggerath, Passavant and Roediger brand names.
Bilfinger received net proceeds of E200 million from the sale. The Water Technologies business has since been renamed Aqseptence Group. www.bilfinger.com, www.tbhic.cn and www.aqseptence.com
Consolidated Water Co Ltd
Secured a 51% interest in Aerex Industries Inc for US$7.7 million in cash (see Filtration Industry Analyst, February 2016). Aerex, which conducts business as Aerex Global Water Solutions, is an original equipment manufacturer and provider of products and services applicable to municipal water treatment and industrial water and wastewater treatment. The company’s products include membrane separation equipment, filtration equipment, piping systems, vessels and custom fabricated components.
Consolidated Water says that the acquisition of a majority interest in Aerex represents an important first step of the expansion of its business model into other water-related industries and markets. www.cwco.com and www.aerexglobal.com
Second quarter 2016 Company
Activity
Comment
Daikin Industries Ltd/American Air Filter Co Inc (AAF)
Purchased US air filter manufacturer Flanders Holdings LLC in a US$430 million deal (see Filtration Industry Analyst, February 2016). Washington, North Carolinaheadquartered Flanders specialises in residential and industrial air filtration. The company, which had sales of US$298 million in 2015 and employs 2700 people, was acquired by Insight Equity Holdings LLC in 2012.
Daikin says that Flanders will enable AAF to develop high value-added products including products used for cleanrooms in the pharmaceutical and food processing sectors. The acquisition of Flanders means filters will now be a core Daikin business along with air conditioning and chemicals. www.daikin.com, www.aafintl.com, www.flanderscorp. com and www.insightequity.com
Suez
Took a majority stake in Driplex, an Indian company that provides water treatment solutions for industrial customers in India and overseas (see Filtration Industry Analyst, January 2016). Founded in 1974 and headquartered in New Delhi, Driplex specialises in engineering, design, manufacturing and commissioning of effluent and process water treatment plants for the power, oil & gas and other industrial sectors. The company has more than 350 employees.
The investment in Driplex is in line with Suez’s strategy to develop its industrial activity and its business internationally. www.suez-environnement.com and www.driplexwater.com
January 2017
Filtration Industry Analyst
5
MERGERS & ACQUISITIONS REVIEW Second quarter 2016 Continued... Company
Activity
Comment
Veolia
Bought Kurion, the California-based specialist in nuclear waste cleanup technology, for US$350 million (see Filtration Industry Analyst, February 2016). Kurion’s activities cover separation, stabilization and robotics for access to restricted areas.
Under Veolia, Kurion hopes to accelerate its growth trajectory while expanding its markets and commercial offerings. www.veolia.com and www.kurion.com
Evoqua Water Technologies
Completed its acquisition of Neptune Benson, a US manufacturer of water filtration and disinfection products for recreational, industrial and municipal water markets (see Filtration Industry Analyst, March and April 2016).
Neptune Benson brings a portfolio of strong brands and technologies and appears to fit well with Evoqua Water Technologies’ ambitious growth plans. www.evoqua.com and www.neptunebenson.com
Hitachi Ltd
Merged its Singapore-based subsidiaries Hitachi Aqua-Tech Engineering Pte Ltd and Aqua Works and Engineering Pte Ltd (see Filtration Industry Analyst, March 2016). Hitachi Aqua-Tech Engineering handles the design, manufacturing, sales and maintenance of reverse osmosis (RO) membrane systems, while Aqua Works and Engineering Pte Ltd is an engineering company focused on water related facilities for condominiums as well as commercial and public facilities.
The merger is designed to strengthen Hitachi’s Water and Environmental Solutions business targeting resorts, commercial facilities and high-rise condominiums in Asia and island countries. Hitachi Aqua-Tech will aim for 2018 revenues of approximately S$38 million in Asia and island countries, with a particular focus on Singapore and the Maldives. www.hitachi.com
The Dow Chemical Co
Invested in OxyMem Ltd, a University College Dublin spinout company based in Athlone, Ireland, that has been commercialising a membrane aerated biofilm reactor (MABR) for wastewater treatment (see Filtration Industry Analyst, April 2016).
The investment will accelerate the commercialisation of OxyMem’s MABR technology, which the company says reduces energy consumption for aeration by up to 75%. www.dow.com and www.oxymem.com
Camfil AB
Strengthened its market position in Finland with the acquisition of F-Suotimet Oy, a Finnish family business that specialises in the manufacture and sale of ventilation filters and filter components (see Filtration Industry Analyst, April 2016). Based in Loimaa, in southwest Finland, Suotimet had a turnover of E5.5 million in 2015.
Camfil says that both companies share the same air filtration values. www.camfil.com and www.fsuotimet.fi
Schlumberger Ltd
Sealed its merger with Cameron International Corp (see Filtration Industry Analyst, April 2016).
The deal combines two complementary technology portfolios, bringing together Schlumberger reservoir and well technology with Cameron wellhead and surface equipment, flow control and processing technology. http://cameron.slb.com, www.slb.com and www.c-a-m.com
Rexnord
Closed the acquisition of Cambridge International Holdings Corp, in a US$210 million deal (see Filtration Industry Analyst, May 2016). Cambridge designs, manufactures and installs metal conveyor belts, architectural mesh and environmental filters. Based in Cambridge, Maryland, USA, the company has three divisions: Conveyor Belts; Architectural Mesh; and Filtration Systems. The Filtration Systems division, through Cambridge EnTech, supplies filtration screens and systems for power, manufacturing, wood processing, pulp & paper and wastewater treatment markets.
Rexnord said that Cambridge aligns well with its strategy to expand its presence in consumer-driven end markets. While Cambridge International will expand Rexnord’s presence in the global food and beverage markets, it also brings a strong filter business to the multi-platform industrial company. www.rexnord.com, www.cambridge-intl.com and www.cambridgeentech.com
Speyside Equity
Finalised the purchase of Opta Minerals Inc, a Canadian vertically integrated provider of custom process solutions and industrial mineral products used primarily in the steel, foundry, loose abrasive cleaning, water-jet cutting and municipal water filtration industries (see Filtration Industry Analyst, May 2016). Opta Minerals has production and distribution facilities throughout Canada and the US, as well as locations in France, Slovakia and Germany.
Speyside says that it has the right operational mindset and managerial discipline to complete the turnaround of Opta Minerals. www.speysideequity.com and www.optaminerals.com
Mann+Hummel
Completed its acquisition of the global filtration operations of Affinia Group, manufacturer of the Wix and Filtron filter brands (see Filtration Industry Analyst, May 2016). Affinia’s filtration business specialises in the oil, fuel, hydraulic and coolant filter aftermarket.
Mann+Hummel says that the addition of the Wix and Filtron brands strengthens its global presence with an expanded product portfolio and access to new markets. www.mann-hummel.com
Parkson
Acquired the assets and hired the employees of FilterONE USA LLC (see Filtration Industry Analyst, June 2016).
This acquisition further bolsters Parkson’s aftermarket parts and services business and brings significant market and product knowledge to the company, as well as a number of new products and product upgrade solutions. www.parkson.com and www.filteroneusa.com
Wilo SE
Expanded in sewage technology by retroactively taking over GVA (Gesellschaft für Verfahren der Abwassertechnik mbH & Co KG), a German company specialising in system technology and components for biological sewage treatment from 1 January 2016 (see Filtration Industry Analyst, June 2016). Founded in 1984, GVA is headquartered in Wülfrath and has a production plant in Sangerhausen. Products include aeration systems and agitators.
Wilo says that the acquisition of GVA is another important milestone in its development from a component supplier to a full-line system supplier for biological sewage treatment. www.wilo.com and www.gva-net.de
6
Filtration Industry Analyst
January 2017