Acquisition Rates Suggest Water and Waste Water Sector Remained Recession Proof
May 06, 2010
As predicted in a March 2009 article, the water and waste water sector of the economy seems to have been little affected by this recession. A review of this site's news center shows the rate of acquisitions for those serving the water and waste water industry has been steady since the beginning of 2007: No decline in M&A activity in late 2008 and 2009 as the recession made its way through the economy. No increase in the first quarter of 2010 as the economy grew stronger.
In any recession, you expect to see some impact on mergers and acquisitions. In the early stages strong companies that may have been looking to sell at a profit will choose to wait until business picks up and they can get the premium they feel they deserve. At the bottom you may see weaker companies unable to weather the downturn get bought out by stronger companies, an early indicator of the economy picking up. A recent article on the sister site Powder and Bulk dot com confirmed the impact this recession had on acquisitions of companies serving the process industries.
There were seven acquisitions announced on this site's news center between January 1 and April 15, 2010, compared to nine acquisitions for the same period in 2009. The total number of acquisitions came to 21 in 2009, compared to 20 in 2008 and 22 in 2007. Following are the acquisitions announced so far in 2010.
Badger Meter Acquires Cox Instruments & Flow Dynamics: The acquisition combines the 3 companies into a wholly-owned subsidiary of Badger Meter, Inc. named Cox Flow Measurement, Inc.
MASSI Acquires North East Aquastore: Mid Atlantic Storage Systems, Inc. (MASSI) announces the acquisition of North East Aquastore (NEA).
Atlas Copco acquires Quincy Compressor: Atlas Copco plans to further develop the Quincy brand independently, in line with the Group's brand portfolio strategy.
Calgon Carbon to acquire Japanese joint venture: Calgon Carbon has signed a definitive agreement to acquire the shares of Calgon Mitsubishi Chemical which it does not currently own.
ITT acquires Nova Analytics: ITT agrees to purchase analytical instrumentation leader Nova Analytics.
Calgon Carbon acquires Hyde Marine: Calgon Carbon acquires Hyde Marine, manufacturer of UV light technology systems used to treat marine ballast water.
Infiltrator Systems acquires E-Z Set Company: Infiltrator Systems continues its septic industry leadership with the acquisition of the E-Z Set Company.