Kurita Water Industries Ltd. (Head Office: Nakano-ku, Tokyo; President: Michiya Kadota; "Kurita") announced recently that it has decided to acquire U.S. Water Services, Inc. (Head Office: Minnesota, U.S.; "U.S. Water"), a company that manufactures and sells water treatment chemicals and facilities. The purchase price is $270 million (approximately 29.4 billion yen). Kurita, through Kurita America Holdings Inc. (Head Office: Delaware, U.S.; a wholly-owned subsidiary of Kurita Group) will acquire 100% of the outstanding shares of Global Water Services Holding Company, Inc. (Head Office: Delaware, U.S.; "GWS"), which is the holding company of U.S. Water. Kurita America Holdings Inc. has signed a stock purchase agreement with ALLETE Enterprises, Inc. (Head Office: Minnesota, U.S.), the shareholder of GWS. The acquisition is subject to customary closing conditions and regulatory approvals.
Kurita Group aims to expand its businesses globally by establishing platforms in four regions of the world – Japan, Asia, Europe and the Americas. This acquisition will strengthen Kurita Group's businesses in North America, which is a strategic market. Kurita Group will accelerate its growth in the U.S. by enhancing its comprehensive solutions that combine water treatment chemicals, facilities and maintenance services.
About Kurita Group
Founded in 1997, U.S. Water is headquartered in Minnesota and has manufacturing and sales offices across the U.S. It has approximately 5,000 customers and has established strong relationships with blue-chip companies in the U.S. in a wide range of industries, including food and beverage, oil and gas, bioethanol refineries, electric power, light industry and commercial / public facilities. U.S. Water helps these customers save water and energy by providing various water chemicals, facilities and engineering services. Kurita Group will combine U.S. Water's customer base and sales network with its own competitive products and highly unique services such as pure water supply and wastewater reclamation. Kurita Group will also utilize its IT sensing technology to develop a service contract-based business. Kurita Group expects to provide comprehensive solutions, together with U.S. Water, and expand into new markets in order to further strengthen customer intimacy.
As part of its goal to establish platforms in four regions of the world, Kurita Group already has a strong presence in Japan, Asia and Europe. This acquisition is expected to increase Kurita Group's revenues in the U.S. by approximately four times. Kurita Group will strengthen its sales, production and technology lineup and establish a sustainable and profitable business through further collaboration with existing Kurita Group water treatment chemicals and facilities companies (i.e. Kurita America, Inc., headquartered in Texas, and Fremont Industries, LLC, headquartered in Minnesota).
As a leading global water treatment company, Kurita Group will continue its efforts to optimize and strengthen its business portfolio and platforms. Kurita Group will also grow through M&A and business alliances with strategic partners and create new values to customers through its comprehensive solutions.
SOURCE: Kurita Water Industries Ltd.