Siemens buying US Filter for $993 million
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.
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, primarily in the U.S. and Europe. Coupled with an annual growth rate of more than 6%, this industry’s size makes it a particularly appealing business segment, adds Siemens.
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 busi-nesses, and will lead US Filter’s activities. Headquarters of this new I&S-based company will remain in Palm Desert.
“This acquisition is an important step in the framework of strengthening our group portfolio. The growing water business will play a critical role in our industrial activities at Siemens,” says Joergen Ole Haslestad, I&S Group’s president. “With it, we will be able to expand our product and service offerings for our customers, in particular, in the world’s largest water market, the U.S.”
Henri Proglio, Veolia’s chairman, adds that, “The sale of US Filter’s systems and services businesses generated significant interest from both strategic and financial investors. We found Siemens’ offer very convincing from all points of view: industrial, financial, and strategic. This transaction will preserve the future and growth of these businesses and their teams, while providing attractive prospects for industrial and commercial cooperation with an important European group.”
Siemens adds that I&S Group provides innovative solutions and services designed to improve com-petitiveness in processing and manufacturing industries and in infrastructure. Offerings cover the lifecycle of industrial and infrastructure facilities, from consulting and planning through installation, operation, integration of MES-solutions, maintenance, and modernization. In its 2003 fiscal year, which ended Sept. 30, I&S employed a total of 25.000 people worldwide and achieved total sales of€4.012 billion.
Control Engineering Daily News Desk
Jim Montague, news editor