2005 Update on Water Industry Consolidation Trends

摘要

The ongoing consolidation trend in the water industry has in turn had an effect on the drinking water utility sector of the busi-ness—as vendors undergo changes in ownership and evolve their strategic directions. These consolidation trends were reviewed in this column in May 2004, and the evolving growth strategies of the major equipment and service companies in the industry were discussed. In this article, the events and transactions of the past several months will be reviewed, and the earlier discussion of industry consolidation will be updated. The current game of "musical chairs" in water company ownership really began in earnest in 2003 and early 2004. Many of the big European firms,, who had acquired their way into the US water industry during the late 1990s, began to shift direction and started to exit various businesses. Veolia, Suez, and some of the large British water companies led the way in this second phase of water transactions, selling off equipment business- es in order to refocus toward their historical businesses on the operating services side of the industry. This trend has continued, but in addition, many smaller, independent companies are also being snapped up by a new generation of acquirers and consolidators in the water business.