Directorate/Acquisitions
SEVERN TRENT PLC
28 July 1999
SEVERN TRENT APPOINTS CHIEF EXECUTIVE OFFICER OF SEVERN TRENT SERVICES AND
ACQUIRES FOUR BUSINESSES IN THE USA
Severn Trent Plc, the international environmental services group, today
announced the appointment of William 'Bill' R Cook as CEO of Severn Trent
Services Inc.
Severn Trent Services was established two years' ago to give focus to the
strategic development of the group's non regulated businesses, other than
Biffa, the leading integrated waste management company in the UK and Belgium.
Severn Trent Services' primary target market is the USA, where the group now
has more than 2000 employees. Bill Cook, an American national who will be
based in Colmar, Pennsylvania, was most recently Chairman, President and CEO
of Betzdearborn Inc, where he helped grow the company to a USD1.3 billion
publicly traded global speciality chemical company.
Welcoming Bill Cook to Severn Trent, Vic Cocker, Group Chief Executive, said:
'I am delighted that someone with Bill's experience and track record of
successfully growing a business, has joined us at this exciting and
challenging time for Severn Trent Services. The profitable growth of our non
regulated businesses is a top priority as we transform the group from a UK
regulated water utility to an international environmental services business.'
Severn Trent also announced the recent completion of four acquisitions in the
USA, building on its already strong position in this market.
ACQUISITION OF TWO WASTEWATER TREATMENT BUSINESSES
Severn Trent has acquired the business and assets of Tetra Processes, a
division of Tetra Technologies Inc, and of Samsco, a New Hampshire company
which assembles wastewater processing equipment. Tetra Processes,
headquartered in Pittsburgh, Pennsylvania, sells proprietary treatment
processes to municipal and industrial customers, primarily for wastewater
applications. These businesses broaden Severn Trent's product and service
offering in the water treatment market, where it is already the market leader
in chlorine disinfection equipment.
ACQUISITION OF TWO ENVIRONMENTAL LABORATORY TESTING BUSINESSES
Severn Trent has strengthened its position as the market leader in
environmental laboratory testing in the USA by the acquisitions of the
business and assets of Precision Laboratories and Savannah Laboratories.
These acquisitions bring Severn Trent another five laboratories, located in
Georgia, Alabama and Florida. Severn Trent now operates seventeen
laboratories in the USA and two in the UK.
Combined sales of the four acquired businesses for their most recent
respective financial years totalled USD50 million (GBP31 million). The total
purchase consideration, payable in cash, amounted to USD88 million (GBP55
million), including USD1 million deferred for up to two years.
Commenting on the acquisitions, David Arculus, Chairman of Severn Trent, said:
'These acquisitions are a further step in the growth of our business in the
USA, which is proceeding at a rapid pace. The acquisition of these businesses
is in line with our strategy of building an international environmental
services group, focussing upon businesses where we can add value through
consolidation and applying our technical knowledge, expertise and systems. We
consider that the returns available through this strategy are currently much
more attractive than those which could be derived from direct ownership of
water utilities, whilst avoiding the higher risk associated with large-scale
projects in developing countries.'
Enquiries:
Vic Cocker Group Chief Executive 0121 722 4176
Alan Costin Group Finance Director 0121 722 4429
James Bradley Brunswick 0171 404 5959
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