Munich, Germany—To expand in the rapidly growing water treatment and supply market, Siemens AG's Industrial Solutions and Services (I&S) Group is buying US Filter Corp. for $993 million from its parent company, Paris-based Veolia Environnment. Based in Palm Desert, CA, and Houston, TX, US Filter employs 5,800 people at 120 locations worldwide, and has annual sales of approximately $1.2 billion. The deal is subject only to regulatory approvals, and is expected to close before the end of September 2004.

US Filter is reported to be the leading provider of municipal and industrial water treatment products and services in North America. Siemens states that the world market for water treatment and supply, as well as industrial wastewater treatment, has a total annual volume of 290 billion euros, primarily in the U.S. and Europe.

Water treatment and supply's main activities are concentrated in Siemens' Automation and Drives (A&D) and I&S Groups. However, I&S manages most of Siemens' water-related businesses, and will lead US Filter's activities. Headquarters of this new I&S-based company will remain in Palm Desert.