Suez Lyonnaise Des Eaux Completes Acquisition of United Water Resources
- Lyonnaise des Eaux Water Division Bolsters U.S. Presence as Part of Growth
Plan - United Water Strengthened to Pursue Growth Opportunities in North America
PARIS, and HARRINGTON PARK, N.J., July 27 /PRNewswire/ -- Suez Lyonnaise des
Eaux (LY: Paris Bourse) the world's largest provider of water and wastewater
services has completed the acquisition of United Water Resources Inc. (NYSE: UWR
- news) the second-largest private water services company in the U.S., in an
all-cash transaction valued at $1.02 billion. Following the acquisition by its
largest shareholder, United Water Resources became a wholly-owned subsidiary of
Suez Lyonnaise des Eaux.
Under the terms of the transaction, United Water Resources shareholders will
receive $35.00 in cash for each United Water Resources common or common
equivalent share held, plus a special closing dividend of 30 cents per common
share and stub period dividends of approximately 19 cents per common share and 5
cents per preference share.
The acquisition of United Water Resources strengthens a strategic alliance
forged in 1994 and follows the recent alignment of the Suez Lyonnaise des Eaux
Group's water holdings into a unified, global division with annual revenues of
approximately $8.1 billion dollars and operations in 120 countries. With an
exclusive focus on water services, the division maintains world leadership
positions in water management, water treatment technology and turnkey
engineering. Full ownership of United Water Resources, along with the 1999
acquisitions of Nalco, the world's largest provider of chemical water treatment
services and products, and Calgon, a worldwide leader in water conditioning, is
consistent with a business development plan designed to give Suez Lyonnaise des
Eaux a competitive edge in the rapidly-growing North American water market.
"Acquiring our strategic ally, United Water Resources, an acknowledged U.S.
water industry leader, supports our corporate commitment to deliver the
essentials of life through businesses engaged in energy, water, waste services,
and communications," said Gerard Payen, member of the Suez Lyonnaise des Eaux
executive board, and chairman of the Water Division. "Water is our second
largest core business. We are absolutely committed to the water sector and to
intensifying our participation in the growth and development of the attractive
North American water services market. The combined resources of United Water
with our other water-related holdings in the U.S. and our global water services
network create an exceptional platform for sharing our technological know-how
and research capabilities with consumers and industry throughout North America."
"I am pleased to announce that United Water will retain its corporate identity
and continue operations under the leadership of Donald L. Correll who remains in
his post as chairman and CEO," Payen said. "Jean Michel Brault, who has
represented our partnership interests with United Water since 1994 and who has
been vice chairman and CEO of United Water Services, our joint venture with
United Water since 1997, will serve as president and chief operating officer of
United Water Resources. We fully intend to be American in America. As has been
our
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practice elsewhere, United Water's operating companies will continue under their
local management."
Donald L. Correll, chairman and chief executive officer of United Water said:
"United Water began as a regional water utility in 1869. Our merger with GWC
Corporation in 1994 ransformed our company into a national entity and spurred a
period of rapid growth. United Water doubled the size of the market it serves
almost three times in the past six years. Strengthening our alliance with Suez
Lyonnaise des Eaux ensures that United Water will fulfill its destiny to grow
even stronger. With the support of Suez Lyonnaise des Eaux we will have the
resources needed to spearhead major water industry acquisitions and partnership
opportunities as our market consolidates."
"We thank our shareholders for supporting our growth initiatives and our
employees for making them a reality," continued Correll. "To our customers and
communities around the country we pledge our dedication to provide quality water
service and enhanced access to a world class network of water technology and
research. And to our employees and their families we offer the exciting
advantage of career opportunities within a global team," Correll said.
Jean Michel Brault, president and chief operating officer, said: "The
transaction recognizes the outstanding value United Water created for its
customers and communities. Now we will build from that value. We will deliver
innovative and high-tech solutions to meet the needs of residential, municipal
and industrial clients throughout North America. We will leverage the superior
know-how and operational excellence of our regulated utilities with our
expertise in managing large-scale operations contracts to benefit our customers
and give United Water a competitive edge."
The acquisition agreement was announced on August 23, 1999, and the final
regulatory approval needed to close the acquisition was received on July 27,
2000. As part of the transaction United Water Resources shareholders have
already received a total of 18 cents per share, paid in three separate dividend
increases of 6 cents per share. An additional special dividend of 30 cents per
share funded by Suez Lyonnaise des Eaux, will be paid to shareholders with the
$35.00 per share merger consideration.
With annual revenues of $32.5 billion, Suez Lyonnaise des Eaux Group is a world
leader in private infrastructure services, with operations in more than 120
countries. Its Water Division is a market leader in the water sector serving 107
million consumers and 60,000 industrial clients and has $8.1 billion in
revenues. Suez Lyonnaise des Eaux has been a principal shareholder in United
Water Resources since 1994 following United Water's merger with GWC Corporation.
Prior to the acquisition Suez Lyonnaise des Eaux had a 33 % stake in United
Water Resources.
In 1997, both companies created jointly owned United Water Services to compete
for non-regulated water and wastewater management contracts in North America.
The former joint venture, now fully owned by the Suez Lyonnaise des Eaux Group's
water division, has annualized revenues of approximately $160 million and
currently operates 25 contracts in 11 states and Canada, including significant
partnerships in Atlanta, Indianapolis, Milwaukee and Gary, Indiana.
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United Water Resources is a holding company engaged in water-related businesses
and real estate investments with a history that dates back to 1869. As the
nation's second -largest private water services company, United Water Resources
provides water and wastewater services through its regulated utilities and
non-regulated municipal contract operations to more than 7.5 million people in
over 400 communities in 17 states.
United Water is a brand name that identifies the company's regulated and
non-regulated water and wastewater operations throughout North America,
including United Water New Jersey, United Waterworks companies and United Water
Services.
Lyonnaise des Eaux is a subsidiary of the water division of Suez Lyonnaise des
Eaux and leader in water management services supplying over 107 million people
with water and wastewater services throughout the world. The company is present
in major cities such as Buenos Aires, Atlanta, Manaus, Manila, Casablanca and
Sydney.
CONTACT: Media - Susanne Trabitzsch of Suez Lyonnaise des Eaux,
+33-1-40-06-66-50; Olivia Barberis of Lyonnaise des Eaux, +33-1-46-95-48-87; or
Carolyn Iglesias, of United Water Resources, 201-767-2836
SOURCE: United Water Resources Inc.
