OSAKA, Japan - Monday, December 19th 2016 [ME NewsWire]
(BUSINESS WIRE)-- Hitachi Zosen Corporation (TOKYO:7004) has announced that it entered into a share sale and purchase agreement to acquire the majority of shares in Osmoflo Holdings Pty Ltd, a leading engineering company for desalination and industrial water treatment utilizing membrane technology such as reverse osmosis. Subject to the completion of procedures, Osmoflo will become a subsidiary of Hitachi Zosen.
Rationale for the Transaction
Osmoflo, founded in 1991, provides a vertically integrated portfolio of high quality offerings including the design, manufacture, supply, operation, maintenance, and sale of water treatment systems in various regions including Australia, the Middle East, South America, and South East Asia.
The transaction will enable integration of Osmoflo's technology, especially reverse osmosis, with Hitachi Zosen's plant engineering technology and experience in the multi-stage flash method. Hitachi Zosen believes this will further enhance the combined company's opportunities in the desalination and industrial water treatment business in overseas markets including the Middle East.
Hitachi Zosen views this opportunity with Osmoflo as a key component of the Hitachi Zosen Group target of promoting operations at overseas bases, outlined in the new medium-term management plan Hitz Vision II, and will seek to maximize synergy with Osmoflo in the hope that it will substantially contribute to sustainable growth for the Hitachi Zosen Group.
Pursuant to the agreement, Hitachi Zosen is scheduled to acquire by cash consideration 70% of the outstanding shares of Osmoflo Holdings Pty Ltd, held by Shine Investments Pty Ltd and Shine Investments International Pty Ltd.
The remaining 30% of shares of Osmoflo will continue to be held by Marubeni Water Australia Pty Ltd, a subsidiary under Marubeni Group, and Hitachi Zosen will operate Osmoflo’s business by effectively utilizing each other’s expertise in the water business.
Osmoflo is a global desalination and wastewater treatment company. Located across Australia, the Middle East, South America and Asia, Osmoflo offers international coverage of its world class capabilities in delivering water and wastewater treatment solutions.
For the full text, please visit: http://www.hitachizosen.co.jp/english/news/2016/12/002450.html
Photos/Multimedia Gallery Available: http://www.businesswire.com/cgi-bin/mmg.cgi?eid=51480439&lang=en
Hitachi Zosen Corporation
Shinsaku Sugimoto, +81-6-6569-0013
Katsuhiro Nagai, +81-3-6404-0802
Public Relations Section