Veolia Environnement Announces Agreement To Acquire Several Unregulated Businesses From Thames Water

Paris, France — Veolia Water UK, subsidiary of Veolia Water, the Water Division of Veolia Environnement, announces the successful conclusion of negotiations with Thames Water for the acquisition of a number of unregulated business interests, at a price of around 115 million Euros (£78 million).

These businesses are all strongly linked to the provision of customer services and the management of water & wastewater related assets. They are predicted to generate sales income of 160 million Euros (£109 million) in 2008, over the first full year.

Commenting on the acquisition, Antoine Frérot, Chief Executive Officer of Veolia Water said, "this acquisition offers Veolia Water significant growth opportunities in the UK and the Republic of Ireland. These delegated management interests, of which certain are financed through'Private Finance Initiatives (PFI)', will enable us to further enhance our expertise in all areas of the water market." David Alexander, Managing Director of Veolia Water UK PLC, added, "we are looking forward to engaging constructively with clients and other stakeholders in these businesses."

Veolia Water has been present in the UK since 1987. Veolia Water UK currently is responsible for the management of three regulated water supply companies in the South East of England - Three Valleys Water, Folkestone & Dover Water Services, and Tendring Hundred Water Services. These companies provide 900 million litres of water a day to a population of 3.3 million. Veolia Water is also present through Veolia Water Industrial Outsourcing, a company specialised in the delegated management of water operations for major industrial operations in the UK as well as Veolia Water Ireland, which supplies water infrastructure services in several counties in the Republic of Ireland. Veolia Water UK Ltd currently employs 1,300 people and has a turnover of 350 million euros (£238.5 million).

SOURCE: Veolia Environnement