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GE agrees to acquire Zenon Environmental

GE Water & Process Technologies, a unit of General Electric Company (NYSE: GE) announced on March 14, 2006 that it ...


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March 20, 2006 by Hazmat Management

GE Water & Process Technologies, a unit of General Electric Company (NYSE: GE) announced on March 14, 2006 that it has signed an agreement to acquire ZENON Environmental Inc. (TSX: ZEN and ZEN.NV.A; OTC: ZNEVF and ZNEAF).

The agreement involves an all cash transaction for $24.00 per share, valuing the transaction at approximately $760-million (or US $656-million).

ZENON is a global leader in advanced membranes for water purification, wastewater treatment and water reuse to municipalities and industries worldwide.

“ZENON is a great strategic fit with GE,” said David Calhoun, GE Vice Chairman and President & CEO, GE Infrastructure. “With the synergies we create, we will have the potential to grow revenue in the municipal water segment at more than 30 per cent for the next several years. Its best-in-class membrane technologies will allow GE to serve the fast-growing ultrafiltration segment of water and wastewater treatment, significantly expand our capabilities to help customers address pressing water scarcity issues and play a key role in the high-growth areas of the municipal water segment. With this terrific addition, we anticipate our water platform growing to nearly US $2.5 billion in revenue next year.”

The agreement is subject to customary regulatory approvals, as well as to approval by the holders of the ZENON Common Shares, Class A Non-Voting Shares and the holders of ZENON options and the approval of the Alberta Court.

ZENON’s advanced membranes include membrane bioreactor (MBR) and hollow fiber technologies that offer low-cost filtration and disinfection in one step with low energy consumption. The company has an extensive patent portfolio that will enhance GE’s current water scarcity platform by providing pre-treatment technology for reverse osmosis desalination and reuse. ZENON’s technology in municipal water treatment is also expected to enhance GE’s presence with advanced technology products in this large global industry.

GE Water & Process Technologies, a unit of General Electric Company, provides industrial, agricultural and potable water management technologies, including desalination, advanced membrane, separation solutions, and water reuse and wastewater management and process technologies. In Canada, GE has operations across the country, including 15 major manufacturing facilities, over 150 sales and service locations and more than 9,500 employees.

For additional information, call Nazeli Clausen, Zenon Environmental at 905-465-3030 or visit www.zenon.ca