ALLETE Inc. (NYSE: ALE) today announced it has signed a definitive agreement to sell U.S. Water Services Inc. to Kurita Water Industries Ltd., a leading international water management company headquartered in Tokyo, Japan. The transaction is expected to close by end of the first quarter 2019 upon the receipt of regulatory approval.
“Kurita is a well-respected global enterprise, and this agreement is a win-win for ALLETE and U.S. Water Services,” said ALLETE Chief Financial Officer Bob Adams. “This action will provide new opportunities for U.S. Water Services to expand and grow the business while enabling ALLETE to allocate capital resources to focus on growth initiatives within ALLETE and ALLETE Clean Energy, which has become ALLETE’s second largest net income contributor.”
U.S. Water Services was acquired by ALLETE in 2015. Under ALLETE’s four-year ownership and continued investment, U.S. Water Services grew significantly, becoming a world class industrial water service provider in North America through an aggressive expansion in geographies, end markets and service offerings. Enabling investments included the acquisition of three water services companies over the past 36 months. Today’s announcement supports ALLETE’s long-term diversification strategy that includes expanding investments in clean energy opportunities.
“We at U.S. Water Services are grateful for the opportunities provided by ALLETE and look forward to working closely with Kurita’s team to further enhance the services and integrated offerings we provide to our customers, while expanding our US market reach,” said U.S. Water Services CEO LaMarr Barnes.
Kurita is one of the world’s largest suppliers of water treatment solutions, ranging from water treatment chemicals to custom design and construction of water treatment facilities. The acquisition of U.S. Water is consistent with the Kurita Group’s strategic focus to expand its businesses globally by establishing bases in four regions of the world – Japan, Asia, Europe and the Americas – and implemented as a measure for strengthening its businesses in North America. The combination of the two companies is expected to accelerate the breadth and depth of new innovations that generate measured customer value with an enhanced integrated solutions portfolio.