US-based RWL Water has agreed to merge with Israeli sewage treatment company Emefcy in a deal, which is reportedly worth about $100m.
The companies have signed a binding sale and purchase agreement (SPA) to merge. After closing, the merged firm would be renamed Fluence Corporation Limited.
Fluence will offer advanced, decentralized water and wastewater treatment solutions for both municipal and industrial applications.
As per the terms of the SPA, Emefcy will provide 100.5 million new ordinary shares as the purchase consideration for all of RWL Water’s equity interests, in addition to paying $10,000 in cash.
Fluence will focus on expanding key markets such as water stressed regions, comprising of the US, the Middle East and Latin America. It will target segments such as commercial and industrial sites and tropical island resorts.
Emefcy is engaged in the development, manufacturing and marketing of membrane aerated biofilm reactor-based (MABR).
With operations in Latin America and the US, RWL Water provides water, wastewater and reuse solution for the customers.
Subject to the approval of multiple conditions, the deal is expected to complete in July of this year.
RWL Water chairman, founder and owner Ronald Lauder said: "By creating Fluence, we are now taking RWL Water and Emefcy to the next level through the unique combination of breakthrough innovations and rapid deployment of standardized solutions by proven team.”
Fluence proposed chairman and Emefcy executive chairman Richard Irving said: “I believe that the combination of our MABR technology and pipeline of upcoming innovations, together with RWL Water’s strong global execution platform, has the potential to significantly increase our share of the US$13 billion market for decentralized solutions, and allow us to become a leading supplier to China’s current US$15 billion deployment of rural wastewater treatment solutions.”