French utility group Suez and Canadian institutional investor CDPQ (Caisse de dépôt et placement de Québec) have announced they are to purchase GE Water & Process Technologies in a €3.2 billion all-cash deal.

GE Water generated around €2.1 billion in revenues in 2016, and the purchase from General Electric Company will see Suez and CDPQ make the acquisition in a 70:30 joint venture.

According to Suez, the deal enhances the group’s long term profitable growth and ‘offers an unparalleled value proposition to Suez shareholders’. In its announcement of the deal, Suez highlighted the greater access to industrial clients that will result, as well as an increased presence in the US and emerging markets, stating that the move will reinforce its position in the €95 billion worldwide industrial water market.

In the statement from Suez, CEO Jean-Louis Chaussade is quoted as saying: ‘I am very proud to announce the acquisition of GE Water, which will accelerate the implementation of Suez’ strategy by strengthening its position in the promising and fast-growing industrial water market… I look forward to integrating GE Water’s highly skilled staff to our teams to form an unparalleled industrial water platform.’

According to Suez, the industrial water market is expected to grow at 5% a year, and the acquisition will allow it to achieve significant cost and revenue synergies. GE Water generates half of its revenues in North America and half in the rest of the world. The integration will bring together the operation and maintenance expertise of Suez and the ‘best-in-class’ digital platform InSight. Suez adds that ‘the contribution of GE Water to Suez Industrial Solutions business will enable the group to further optimise its operations in manufacturing supply chain, engineering and services delivery’.

The deal is expected to be completed by the middle of this year, following regulatory approvals in the EU and the US.