Product category:
Separation and Membrane Systems
News Release from: Zenon Environmental
Edited by the Processingtalk Editorial
Team on 15 March 2006
GE to acquire Zenon Environmental
GE have acquired Zenon Environmental for their ultrafiltration membrane technologies, in an all cash transaction for Cdn$24 per share, a total value of approx Cdn$760 million, or US $656 million
GE Water and Process Technologies, a unit of General Electric Company and Zenon Environmental have announced that they have signed an agreement in connection with the acquisition by way of Plan of Arrangement of Zenon by GE in an all cash transaction for Cdn$24 per share, valuing the transaction at approximately Cdn$760 million, or US$656 million Zenon is a global leader in advanced membranes for water purification, wastewater treatment and water re-use to municipalities and industries worldwide
This article was originally published on Processingtalk on 22 Nov 2004 at 8.00am (UK)
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Two recent potable water supply projects have used Zenon ZeeWeed ultrafiltration membranes, to remove suspended solids and pathogens such as Cryptosporidium and Giardia
Over its 26-year history, Zenon pioneered the use of ultrafiltration technology for water and wastewater treatment.
The technology has become the technology of choice for water and wastewater plants, and its adoption is spreading rapidly throughout the world.
"Zenon is a great strategic fit with GE," said David Calhoun, GE Vice Chairman and President and CEO, GE Infrastructure.
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Zenon Environmental is donating 54 of its Homespring units to provide clean, safe drinking water to victims of the tsunami disaster in India and Sri Lanka, in co-operation with World Vision
First ZeeWeed technology drinking water plant
Zenon Environmental has received a purchase order for its first drinking water treatment plant in New York State: ZeeWeed technology will filter water for Westchester Joint Water Works in NY
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Hurricane victims in the US Gulf Coast will soon receive clean water from water treatment systems donated by Zenon, and by Maytag their North American distributor
"With the synergies we create, we will have the potential to grow revenue in the municipal water segment at more than 30 percent for the next several years.
Its best-in-class membrane technologies will allow GE to serve the fast-growing ultrafiltration segment of water and wastewater treatment, significantly expand our capabilities to help customers address pressing water scarcity issues and play a key role in the high-growth areas of the municipal water segment.
With this terrific addition, we anticipate our water platform growing to nearly US$2.5 billion in revenue next year".
Andrew Benedek, Chairman and CEO of Zenon Environmental, said, "This transaction will benefit both our customers and GE customers.
Our advanced membranes and talented team, combined with GE technology, scale, strong global network and services expertise, will open up new global opportunities for our ultrafiltration technology".
Zenon advanced membranes include membrane bioreactor (MBR) and hollow fibre technologies that offer low-cost filtration and disinfection in one step with low energy consumption.
Zenon has an extensive patent portfolio that will enhance the GE current water scarcity platform by providing pre-treatment technology for reverse osmosis desalination and re-use.
Zenon technology in municipal water treatment will enhance the GE presence with advanced technology products in this large global industry.
Zenon technologies also will help GE provide the best life-cycle cost reduction for customers in customised service agreements.
Under the terms of the agreement, GE will acquire all of the issued and outstanding Common Shares of Zenon and the Non-Voting Class A Shares for Cdn$24 in cash.
Zenon option holders will be eligible to receive Cdn$24 cash, less the exercise price of the respective option.
The transaction is to be effected by way of statutory "Plan of Arrangement" and will require the approval of Zenon securityholders.
The management of Zenon anticipates that a management proxy circular regarding the Arrangement will be mailed to securityholders by the end of March 2006, with a meeting of the Zenon shareholders being held to approve the Plan of Arrangement in late April or early May 2006.
Assuming successful completion of the Arrangement, GE intends to amalgamate Zenon with a wholly owned subsidiary of GE.
The Board of Directors of Zenon, following the unanimous recommendation of a Special Committee of independent directors established to oversee the transaction and the negotiation thereof, has unanimously approved the Arrangement Agreement and is recommending the holders of Zenon Common and Non-Voting Class A Shares vote in favour of the Plan of Arrangement.
GMP Securities LP and JP Morgan Securities have acted as financial advisers to the Zenon Board and Special Committee and have also each provided an opinion to the Board and the Special Committee confirming the fairness of the offer to the holders of the Common Shares and Non-Voting Class A Shares of Zenon.
Andrew Benedek, Chairman and Chief Executive Officer, who, together with his affiliates, owns 6,148,160 shares, has entered into a support agreement agreeing to vote in favour of the Arrangement, subject to limited exceptions, including the termination of the Arrangement Agreement by Zenon.
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