Suez has completed the previously announced acquisition of GE’s Water & Process Technologies for $3.4bn.

The acquisition was announced in March this year. For the deal, Suez formed a 70/30 joint venture with Caisse de dépôt et placement du Québec (CDPQ), a Canadian pension fund manager.

In October 2016, GE said it was willing to sell its water division as part a proposed merger with Baker Hughes. That merger was finalized in early July 2017.

Last year, GE’s Water & Process Technologies earned revenue of $2.1bn. It has operations across 130 countries with a workforce of about 7,500.

GE Power president and CEO Russell Stokes said: “The sale of GE Water & Process Technologies is the next step in GE Power’s business strategy and portfolio transformation.

“By creating a more simplified and focused business we’ll be better positioned to leverage Power’s strengths across the entire electricity value network to serve our customers and position the business for growth moving forward.”

Suez expects to receive full cost and revenue synergies after five years of acquiring the division. The company also expects a €65m impact on its earnings before interest, taxes, depreciation and amortisation (EBITDA) from identified annual run-rate cost synergies (of which 80% achieved in third year) and €200m in revenue synergies.

GE's Water & Process Technologies is claimed to be a world-class service provider for industrial clients, supplying them with advanced water, waste-water and process systems solutions to blue-chip customers.

Presently, Suez Water Technologies & Solutions has more than 10,000 employees who work with more than 50,000 customers worldwide. The French water treatment company claims to have more than 650 R&D facilities as well as 17 research and excellence centers, which expand its water treatment offerings and digital capabilities.

Suez CEO Jean-Louis Chaussade said: “I am thrilled to welcome GE Water & Process Technologies’ teams and know-how. This is an exciting moment for SUEZ, as our Group now has an ever-stronger knowledge and skillset to bring innovation and enhanced value to industrial and municipal customers around the world.

“With over 90,000 employees working across the entire water and waste value chain, we will help address pressing global challenges such as water scarcity, resources preservation, and climate change.”

Image: Suez acquires GE Water & Process Technologies. Photo: courtesy of John Kasawa/FreeDigitalPhotos.net.