VEOLIA TO SELL PORTIONS OF USFILTER, FOCUS ON LONG-TERM OPERATING CONTRACTS Seidel Sees Bright Future Under New Ownership PALM DESERT, Calif., Sept. 24, 2003 -- Veolia Environnement (VE), USFilter’s parent company, announced today that it intended to sell USFilter’s Consumer & Commercial business (Culligan and Everpure) and the combined USFilter Systems and Services & Products (S&P) business. The proceeds of these sales would be used to reduce VE’s $13 billion debt load.
VE will retain USFilter’s Operating Services and Engineering & Construction business, which is more aligned with VE’s core business of long-term service contracts with municipalities and industries. These businesses operate water and wastewater facilities and systems for over 600 North American communities and industry leading companies.
“As VE more precisely defined their strategic focus around long-term operating contracts, much of the USFilter business scope fell outside of their definition,” said Andy Seidel, CEO of USFilter.
“Each of these businesses, whether it be Culligan, Everpure or the equipment and industrial services (USFilter Systems and Services & Products) business of USFilter are industry leaders in sales, growth and profitability – their future remains exciting and bright, especially after finding new investors or owners.
”Furthermore,” added Seidel, ”our Operating Services and Engineering and Construction business, already the North American leader in industrial and municipal outsourcing, should benefit from VE’s sharper focus on this business.
“Finally, no customer or client should be concerned about the transition of ownership with regard to the quality or timeliness of the services or products any USFilter company provides. Our people are focused on perfection and will not be distracted by this announcement.”
The Culligan and Everpure businesses are market leaders in residential and commercial water treatment, with annual sales of over $740 million.
The USFilter Systems and Services & Products (equipment and industrial services) business is the largest water and wastewater treatment equipment and associated services company in the world, with annual revenues of $1.2 billion, and an installed base of thousands of installations.
The USFilter Operating Services and Engineering and Construction business has the leading share of both the municipal and industrial outsourcing markets (over 40% market share), according to industry newsletter Public Works Financing. Annual revenues are more than $600 million. |
