Water acquires U.S. Water
Ondeo, the water division of SUEZ
(NYSE:SZE), announced that it has acquired U.S. Water LLC, which is owned jointly by
Bechtel Enterprises Holdings, Inc. of the United States and United Utilities Plc. of Great
Britain, for US$40 million. Suez plans to merge U.S. Water into its subsidiary, United
In addition to the recent contract wins in Puerto Rico and Halifax, Canada, and
Mexico this acquisition further reinforces United's leadership in the North American water
services market, said Jacques Pétry, Chairman and CEO of SUEZ's water division.
We fully expect that U.S. Waters integration into United Water will expand our
presence in several key growth areas, strengthen our position in the eastern United States
and increase our overall U.S. market share.
U.S. Water currently operates 40 contracts, supplying a total of 1 million people with
water and wastewater services. The total annual revenues for U.S. Waters water and
wastewater operations were USD$30 million in 2001. It primarily deals with small to
medium-sized municipal projects and complements United Waters leading position in
the market with large municipal projects.
U.S. Waters water and wastewater contracts operations are primarily based in the
northeastern region of the United States. The largest contract, worth US$8.5 million in
annual revenue, is for wastewater services in Springfield, MA, and its second largest
contract, worth approximately US$7.3 million, is for water services in Camden, NJ.
In North America, the market for water and wastewater services has been growing
steadily since 1997 as municipalities seek solutions for their water-related needs,
said Pétry. Through this acquisition and its recent contract wins, Ondeo is
extremely well positioned to take advantage of this market's growth.
In 2001, the water division of SUEZ, generated 2.1 billion euros in revenues in North
America, in the municipal water and wastewater market through its subsidiary United Water,
in the design and construction of water treatment facilities with Ondeo Degrémont, and
services to industrial customers with Ondeo Nalco. This represents a 10% growth compared