Emefcy, RWL Water execute sale and purchase agreement
ASX-listed Emefcy Group and US-based RWL Water have executed a binding sale and purchase agreement (SPA), under which the firms will merge to form a new company called Fluence Corporation.
The deal is expected to result in a decentralised water and wastewater treatment solutions provider for both municipal and industrial purposes.
The new company will combine Emefcy’s pipeline of innovations with RWL Water’s standardised solutions.
It is expected that the merged entity will be able to bolster its presence in Chinese market for rural wastewater treatment.
RWL Water president and CEO Henry Charrabé said: “Fluence will merge two experienced professional teams in the global water and wastewater treatment space.
“With over 7,000 references in more than 70 countries, we believe we have the track record and platform to deliver disruptive technological innovations and systems to meet our ambitious goals.”
Fluence is also expected to be in a position to expand in water stressed markets such as the US, the Middle East and Latin America, as well as create sales synergies between the products and systems of the two firms.
Emefcy executive chairman Richard Irving said: “I believe that the combination of our MABR technology and pipeline of upcoming innovations, together with RWL Water’s strong global execution platform, has the potential to significantly increase our share of the $13 billion market for decentralized solutions, and allow us to become a leading supplier to China’s current $15 billion deployment of rural wastewater treatment solutions.”
The new company will offer Fluence’s membrane aerated biofilm reactor (MABR) that saves 90% of energy during wastewater treatment, among other new technologies for water treatment.
Expected to be completed by July, the merger by acquisition under SPA is subject to customary closing conditions, shareholder and regulatory approvals.