The Water Purification business, which is part of Severn Trent’s Business Services organisation, is a global player in the water treatment products industry focused on electrochlorination, disinfection and filtration, with operations in the USA, Europe and Asia.
Since 2002, Severn Trent and De Nora have been joint venture partners in Severn Trent De Nora, which specializes in electrochemical processes for water and waste water treatment for the municipal, onshore and offshore energy and marine sectors. Severn Trent De Nora is part of this transaction.
The sale of the Water Purification business will allow Severn Trent to focus on its core water and wastewater service businesses.
Liv Garfield, CEO of Severn Trent, said: “Over the last 18 months we’ve made a number of improvements to the Water Purification business, including improving our sales process and contract management. The business is now on a more stable footing and growing both the top and bottom line. However, it’s clear that in order for the business to fulfil its growth potential it needs manufacturing and product expertise and focus so it’s the right time for it to have a new owner.”
De Nora has taken the decision to broaden its footprint in the water treatment sector and has recently acquired ozone technology company Ozono Elettronica Internazionale (OEI).
“Water treatment has always been in the DNA of our company, and a substantial portion of our turnover is generated by sales of products addressing water issues,” said Paolo Dellachà, CEO of Industrie De Nora. “Over the last few years, our management has been able to work in close collaboration with Severn Trent’s Water Purification business, and we share mutual trust and respect that shall speed up the consolidation and enlargement of our product offering with their well recognised brands and products.”
Lawrence Quinn, CEO of Severn Trent Water Purification, said: “We look forward to moving our considerable resources into a highly reputable and dynamic group that has, over the years, consistently demonstrated the ability to pursue meaningful business opportunities and achieve its goals thanks to its committed management and its lean and effective governance.”
The transaction is expected to be completed by the end of June 2015.