H2O Innovation Enters U.S. Operation and Maintenance Market With the Acquisition of Utility Partners and Concurrent Private Placement of $20 M
Troutman Sanders was mentioned in a July 13 Canadian Business Journal article about H 2O Innovation Inc. announcing that it has entered into a binding agreement pursuant to which H 2O Innovation will acquire Utility Partner, LLC, a U.S.-based company specializing in the operation and maintenance of water and wastewater treatment plants for U.S. $17 million.
Utility Partners provides U.S. municipal clients with innovative and cost-effective solutions for water and wastewater treatment plants. It currently operates thirty-four plants in six U.S. states, mainly on the Gulf coast, Southeast, Northeast and the West Coast. Utility Partners’ long-term contracts have multi-year renewal options with expected revenues of approximately $88.3 million over the next five years. Management expects the acquisition to be accretive to earnings and cash flow from day one. In addition, following the acquisition, the majority of H 2O Innovation’s revenues will be derived from its specialty products and services segment, which are more predictable and recurring in nature. Troutman Sanders acted as legal advisor to H 2O Innovation in connection with the acquisition and the financing.