UEL is a membrane-based water and wastewater treatment and reclamation solution provider with businesses mainly in China’s chemical, petrochemical and industrial park sectors.
The consortium has been formed by CITIC Environment Protection Co Ltd and KKR China Water Investment Holdings Ltd. CITIC will become the controlling shareholder of UEL through its majority interest in the consortium. UEL’s management team will continue to lead the business with the support of CITIC and KKR.
KKR has been an investor in United Envirotech since 2011.
Wang Jiong, vice chairman and president of CITIC Ltd and chairman of CITIC Environment Protection Co Ltd, said: “Our investment in UEL provides us a strong platform to develop in China’s water and wastewater treatment sector. Environmental protection is a top priority for China, and CITIC foresees not only commercial opportunity but also societal benefit from this investment. We are always seeking strategic and forward looking opportunities such as this which we believe will create value for our shareholders.”
David Liu, a member of KKR, co-head of Asia Private Equity and CEO of KKR China, said: “Since 2011, we have been working closely with UEL’s strong management team to enhance UEL’s technological platform and expand its business through organic and inorganic activities. We look forward to continue working with UEL, and now CITIC, as a value-added partner to support its long–term growth and provide much needed water and wastewater treatment services which will play a role in addressing China’s water challenges.”