Severn Trent Plc (Coventry, U.K.; www.severntrent.com) and Industrie De Nora S.p.A. (Milan, Italy; www.denora.com) have reached a definitive agreement for the share sale to De Nora of Severn Trent’s Water Purification business – part of Severn Trent’s Business Services organization.
Through its operations in the U.S., Europe and Asia, the Water Purification business is a global player in the water treatment products industry focused on electrochlorination, disinfection and filtration. It has a strong technology platform and a portfolio of brands and products recognized around the world for their quality and reliability.
Since 2002, Severn Trent and De Nora have been partners in a successful joint venture (JV), 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. This entity, Severn Trent De Nora, is part of the transaction.
Severn Trent Plc took the decision to enter in the transaction after it recently reorganized and brought together its remaining non-regulated businesses into a new ‘Business Services’ division. The sale of the Water Purification business will allow the management team to focus on creating value from its core businesses in water and waste water services, which include Operating Services U.S., Operating Services U.K., including non-household retail, and renewable energy.
Liv Garfield, chief executive officer at Severn Trent Plc, commented: “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 fulfill its growth potential it needs manufacturing and product expertise and focus so it’s the right time for it to have a new owner. This sale will allow us to focus on our core water and wastewater service businesses in the U.K. and abroad. We remain committed to our Business Services portfolio, which is focused on delivering growth in water and waste water services in the U.K. and internationally.”
The transaction is expected to be completed before by June 30.