M&A Investment Trends in the world - 161130 · and systems integrator $12.5bn 2 Suez: Global water...
Transcript of M&A Investment Trends in the world - 161130 · and systems integrator $12.5bn 2 Suez: Global water...
© AMANE 2016 – December 2016December 6-7, 2016
Designing tomorrow’s successes
M&A Investment Trends
Affiliated With
Thierry NOELManaging Partner
© AMANE 2016 – December 20162
Our Mission: Accelerating the growth of our clients
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Planning
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strategy• Funding• Asset
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offerings• Sales support• Branding &
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© AMANE 2016 – December 20163
As an independent team of water experts, Amane have successfully delivered a number of due diligence, M&A and fund raising projects in the water sector
Advisor to seller
Sale of Water Division
Advisor to buyer
AcquisitionOf German Water
EPC
Advisor to buyer
Acquisition
Advisor to the company
Acquisition of Water EPC UK/USA
Advisor to the company
Acquisition
Confidential acquirer
Buy—side advisor
Confidential acquirer
Advisor to buyer
Acquisition of Severn Trent Services Water
Purification
Market Advisor
IPO
€22 000 000
Sole advisor
Fund raising
Advisor to investor
Capital Investment
Confidential acquirer
Buy—side advisor
Sale
Advisor to seller
Saleto
Advisor to buyer
Spanish Desalination Developer
Advisor to Investor
Technology start-upFund raising
For innovation spin-off
Fund Raising
Advisor to buyer
Acquisition of Water Treatment in
Southern Europe
to
Advisor to seller
© AMANE 2016 – December 20164
137 water deals tracked from January to September 2016
82 80 85 86 88
107
132144
136
119
145
199 195 195
210
185
137
0
50
100
150
200
250
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016*
Number of deals in the water industry (2000-2016*)
*YTD in September 2016
Average for the last 15 years
© AMANE 2016 – December 20165
A few large deals should make 2016 a record year
$214m
$81m
$192m
$278m
$159m
$225m
$392m
$544m $552m
$78m
$170m
$483m
$261m
$116m
$226m
$405m
$m
$100m
$200m
$300m
$400m
$500m
$600m
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Average deal size ($m)(2000-2015*)
*2016 Average deal size is not yet available
© AMANE 2016 – December 20166
1 Veolia: Global water operator and systems integrator
$12.5bn
2 Suez: Global water operatorand systems integrator
$8.0bn
3 Ecolab: Water treatmentchemicals and related services
$7.1bn
4 Pentair: Pumps, valves, UF membranes and pool equipment
$4.6bn*
5 Xylem: Pumps, analytics, & wastewater technology supplier
$3.7bn
6 Grundfos: Danish pump supplier with strength in residential
$3.7bn
7 GE Water: Chemicals,membranes & systems, including anaerobic
$2.1bn
8 Kemira: Finnish water treatment chemicals specialist
$2.6bn
9 Danaher: Analytics,disinfection, sludge & systems integration
$2.3bn
10 AECOM: US engineer with global presence
$2.0bn
11 Kurita: High-Purity water systems, and chemical supply
$1.8bn
12 Ebara: Japanese pump manufacturer
$1.8bn
12 Remondis: German water and wastewater operator
$1.7bn
14 Tetra tech: US engineer $1.7bn
15 BEWG: Chinese water and waste water project developer
$1.6bn
16 KSB: German pumps and valves manufacturer
$1.5bn
17 CH2M: Engineer with design-build and operations interests
$1.3bn
18 Saur: French water operator $1.3bn
19 Evoqua: US water technology & services group
$1.2bn
20 Mueller Water: Water equipmentand technologies
$1.2bn
21 MWH Global: US engineer $1.0bn
22 Dow Water & PS: Membranes, biocides and filtration
$1.0bn
23 Aqualia: Spanish EPC contractor and operator
$1.0bn
24 Metawater: Japanese systems integrator and membrane specialist
$900m
25 ABB: Meters, automation & control systems
$900m
27 CULLIGAN: Water softeners & packaged systems
$450m
28 Beijing Origin Water: MBR systems supplier & project developer
$800m
29 Doosan: Korean desalination specialist $800m
30 Rexnord: Zurn and VAG valve brands $800m
31 Black & Veatch: US engineer with global footprint
$700m
34 Beijing Capital: Water & wastewater project developer
$700m
35 Sound Global: Water & waste water project developer & EPC
$600m
36 BWT: Austrian commercial water systems specialist
$590m*
At least 40% of largest water companies have completed an acquisition in 2015-2016…
According to GWI Magazine Jan. 2016 issued, excluding utilities and estimated revenue for 2015, Exchange rate €/$=1,1*Source Capital IQ
At least One acquisition completed in 2015-2016
© AMANE 2016 – December 20167
1 Veolia: Global water operator and systems integrator
$12.5bn
2 Suez: Global water operatorand systems integrator
$8.0bn
3 Ecolab: Water treatmentchemicals and related services
$7.1bn
4 Pentair: Pumps, valves, UF membranes and pool equipment
$4.6bn*
5 Xylem: Pumps, analytics, & wastewater technology supplier
$3.7bn
6 Grundfos: Danish pump supplier with strength in residential
$3.7bn
7 GE Water: Chemicals,membranes & systems, including anaerobic
$2.1bn
8 Kemira: Finnish water treatment chemicals specialist
$2.6bn
9 Danaher: Analytics,disinfection, sludge & systems integration
$2.3bn
10 AECOM: US engineer with global presence
$2.0bn
11 Kurita: High-Purity water systems, and chemical supply
$1.8bn
12 Ebara: Japanese pump manufacturer
$1.8bn
12 Remondis: German water and wastewater operator
$1.7bn
14 Tetra tech: US engineer $1.7bn
15 BEWG: Chinese water and waste water project developer
$1.6bn
16 KSB: German pumps and valves manufacturer
$1.5bn
17 CH2M: Engineer with design-build and operations interests
$1.3bn
18 Saur: French water operator $1.3bn
19 Evoqua: US water technology & services group
$1.2bn
20 Mueller Water: Water equipmentand technologies
$1.2bn
21 MWH Global: US engineer $1.0bn
22 Dow Water & PS: Membranes, biocides and filtration
$1.0bn
23 Aqualia: Spanish EPC contractor and operator
$1.0bn
24 Metawater: Japanese systems integrator and membrane specialist
$900m
25 ABB: Meters, automation & control systems
$900m
27 CULLIGAN: Water softeners & packaged systems
$450m
28 Beijing Origin Water: MBR systems supplier & project developer
$800m
29 Doosan: Korean desalination specialist $800m
30 Rexnord: Zurn and VAG valve brands $800m
31 Black & Veatch: US engineer with global footprint
$700m
34 Beijing Capital: Water & wastewater project developer
$700m
35 Sound Global: Water & waste water project developer & EPC
$600m
36 BWT: Austrian commercial water systems specialist
$590m*
…while some of them have sold a part or all their water businesses
According to GWI Magazine Jan. 2016 issued, excluding utilities and estimated revenue for 2015, Exchange rate €/$=1,1*Source Capital IQ
At least One Sale completed / Ongoing sale in 2015-2016
© AMANE 2016 – December 20168
Key trends in 2016
Big PE exits (Culligan, TestAmerica) and more to come (Evoqua,
Solenis, Triwater)
An uptick in water IPOs (AquaVenture, Forterra)
Corporate exits from water (GE, Bilfinger, Schlumberger)
Chinese buying in Europe (Anhui Guozhen, Safbon, New Concept)
Portfolio broadening (Xylem/Sensus, Ecolab/Aquatech, H2O
Innovation/Utility Partners, Suez)
Family offices hit the big time (SKion/Ovivo)
© AMANE 2016 – December 20169
Fair value legislation in key US states accelerates big-ticket regulated M&A
More regional players going national in the US (U.S. Water, Woodard & Curran)
Chinese domestic BOT portfolio consolidation dries up
UK service company reshuffling ahead of retail competition in 2017
Middle East consolidation focused on Saudi
Localized trends
© AMANE 2016 – December 201610
Data analytics/cybersecurity, rather than physical interventions
Smart solutions which lead to capex deferral/lower O&M costs
Portfolio diversification/platform-building (SKion, XPV Capital, Tigris Water)
Significant PE commitments to oil and gas service companies
Focused tuck-ins by corporates
Where is the money focusing?
© AMANE 2016 – December 201611
The sale of GE Water will set the tone for 2017
Smart data analytics will increasingly drive water M&A
A rationalization of deal multiples
Less “soloing” of acquired water businesses and more “ecosystem” creation
More failures of small listed water tech companies (HaloSource, APTwater, Therma-Flite)
A US crackdown on Chinese SOEs buying American companies
What we expect in 2017?
© AMANE 2016 – December 2016Market Strategy Mergers & Acquisitions Investments Branding
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