Christ/Eimco merger starts in December
The process of combining Christ Water Technology AG (CWT) with Canadian company GLV Inc's water treatment group, Eimco Water Technologies (EWT), will commence early in December 2009 after the management of GLV announced on 17 November 2009 that it had acquired 80.5% of the voting shares of in a voluntary takeover bid.GLV foresees an increased presence in markets such as seawater desalination and thermal power generation.
GLV's management estimates that restructuring costs of US$ 20-30 million will be incurred in the next two years to combine the two organizations and bring CWT's profitability and operating efficiency in line with GLV's current internal working guidelines.
The acquisition represents a cash consideration of Can$ 85 million (US$ 80 million). CWT shareholders who have not yet tendered their shares have another three months to do so for €3.35 per CWT share.
According to GLV, the EWT/CWT combination will result in a more complete, stronger value-added technological portfolio, a better balanced positioning between the industrial and municipal segments, increased presence in certain high-growth markets -- such as thermal power generation, seawater desalination, petrochemicals, microelectronics and solar power industries -- and a stronger international footprint, notably in Asia and Europe.