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NEWS ISSN 1365-6937/07 © 2007 Elsevier Ltd. All rights reserved. This journal and the individual contributions contained in it are protected under copyright by Elsevier Ltd, and the following terms and conditions apply to their use: Photocopying Single photocopies of single articles may be made for personal use as allowed by national copyright laws. Permission of the publisher and payment of a fee is required for all other photocopying, including multiple or systematic copying, copying for advertising or promotional purposes, resale, and all forms of document delivery. Special rates are available for educational institutions that wish to make photocopies for non-profit educational classroom use. BUSINESS NEWS FOR THE FILTRATION AND SEPARATION INDUSTRIES ANALYST F FIL IL TRATION TRATION ATIO L L L L INDUS INDUS TRY TRY Y EUROPEAN PRIVATE EQUITY FIRM TO ACQUIRE NORIT European independent pri- vate equity fund manager Doughty Hanson & Co is to acquire Norit for an undisclosed sum from the current majority share- holder, the Dutch private equity firm Gilde Buy Out Partners. Norit, which is headquar- tered in Zenderen, The Neth- erlands, supplies consuma- bles, components and systems to the water and beverage purification industries. The business operates globally through a network of 12 production sites in seven countries covering more than 100 countries worldwide. Norit is expected to generate revenues of 369 million in 2007. The acquisition is in line with Doughty Hanson’s strategy to acquire market- leading, mid- to large-sized European businesses. Existing Norit management will invest around 20% in the acquisition vehicle. “Norit is an excellent business, operating in a number of attractive end mar- kets with strong growth and earnings potential. We believe that there is further scope for growing the business and we look forward to working with the experienced management team,” said Mark Corbidge, principal at Doughty Hanson. The private equity firm describes Norit as a high- quality business, with a number of attractive char- acteristics including leading market positions in purifica- tion for the water and beverage industries; good margins and strong recurring revenue base; a record of innovative product development; and an experienced and well- respected management team led by Norit chief execu- tive René Kuipers and chief financial officer Bernard ten Doeschot. The acquisition is subject to regulatory approvals and is expected to close in mid- 2007. Groupe Laperrière & Verreault Inc (GL&V) is to sell its Process Group to FLSmidth for C$950 million and spin off its Water Treatment and Pulp and Paper Groups to shareholders. GL&V Process, which includes Dorr-Oliver Eimco and the recently acquired Krebs International (see Filtration Industry Analyst , December 2006), employs about 1000 people and is expected to post a turnover of approximately C$523 million for the financial year ended 31 March 2007. Dorr-Oliver Eimco was formed by the merger of Dorr-Oliver (GL&V acquired the Canadian and interna- tional activities in 1990 and 1999 respectively) and Eimco (acquired by GL&V in 2002). Product groups within the GL&V Process business include mining, clarifiers/ sludge collection, classify- ing/degritting, dissolved gas flotation, granular media fil- ters, pumps, screens, sludge concentration and dewater- ing, thickeners, vacuum fil- tration, pressure filtration, mineral flotation, treatment processes, heavy media separation and biological/ aeration. Major markets for GL&V Process include alu- mina, chemical, food, miner- als, mining, power/flue gas desulfurization, recaust and steel. FLSmidth says that the acquisition of GL&V Process enables the Danish company to realise the global growth strategy for its minerals activities - based on growing the Group’s minerals busi- ness to the same size and strength as its cement busi- ness. FLSmidth is currently present in all steps of mineral processing except the sepa- ration of liquids and solids. FFE Minerals, FLSmidth’s current minerals business, is an expert in pyro tech- nologies and in crushing and grinding of minerals, while GL&V Process specialises in the downstream separation processes. GL&V’s board of direc- tors recommends that share- holders vote in favour of the transaction, which is sched- uled to close at the end of July 2007. GL&V plans to transfer its Water Treatment, Pulp and Paper and Manufacturing groups into a new corporation which will list on the TSX Exchange and which will be spun off to GL&V share- holders. The new company’s mission will be to become a world leader in targeted industrial and municipal solutions, with a strong focus on the fast-growing environ- mental technology sector. CONTENTS COMPANY PROFILE 9–10 COMPANY WATCH 11–13 DIARY 15 DIVIDENDS 5 EXCHANGE RATES 16 FINANCIAL CALENDAR 14 IN BRIEF 4 ,5,6 NEWS 1,2,3,4,5,6,16 NPD 14 ORDERS 8 PEOPLE 7 STOCK WATCH 15 MAY 2007 ISSN 1365-6937 www.filtsep.com FLSMIDTH PAYS C$950MN FOR GL&V’S PROCESS GROUP COMMENT Norit’s strong product portfolio and exposure to the global water mar- ket make this an attractive acquisition for Doughty Hanson, with considerable growth potential.

European private equity firm to acquire Norit

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Page 1: European private equity firm to acquire Norit

NE

WS

ISSN 1365-6937/07 © 2007 Elsevier Ltd. All rights reserved.This journal and the individual contributions contained in it are protected under copyright by Elsevier Ltd, and the following terms and conditions apply to their use:

PhotocopyingSingle photocopies of single articles may be made for personal use as allowed by national copyright laws. Permission of the publisher and payment of a fee is required for all other photocopying, including multiple or systematic copying, copying for advertising or promotional purposes, resale, and all forms of document delivery. Special rates are available for educational institutions that wish to make photocopies for non-profit educational classroom use.

BUSINESS NEWS FOR THE FILTRATION AND SEPARATION INDUSTRIES

ANALYSTFFILILTRATIONTRATIONTRATIONILTRATIONILILTRATIONIL INDUSINDUSTRYTRYTRY

EUROPEAN PRIVATE EQUITY FIRM TO ACQUIRE NORIT

European independent pri-vate equity fund manager Doughty Hanson & Co is to acquire Norit for an undisclosed sum from the current majority share-holder, the Dutch private equity firm Gilde Buy Out Partners.

Norit, which is headquar-tered in Zenderen, The Neth-erlands, supplies consuma-bles, components and systems to the water and beverage purification industries. The business operates globally through a network of 12 production sites in seven countries covering more than 100 countries worldwide. Norit is expected to generate revenues of 369 million in 2007.

The acquisition is in line with Doughty Hanson’s strategy to acquire market-leading, mid- to large-sized European businesses. Existing Norit management will invest around 20% in the acquisition vehicle.

“Norit is an excellent business, operating in a number of attractive end mar-kets with strong growth and earnings potential. We believe that there is further scope for growing the business

and we look forward to working with the experienced management team,” said Mark Corbidge, principal at Doughty Hanson.

The private equity firm describes Norit as a high-quality business, with a number of attractive char-acteristics including leading market positions in purifica-tion for the water and beverage industries; good margins and strong recurring revenue base; a record of innovative product development; and an experienced and well-respected management team led by Norit chief execu-tive René Kuipers and chief financial officer Bernard ten Doeschot.

The acquisition is subject to regulatory approvals and is expected to close in mid-2007.

Groupe Laperrière & Verreault Inc (GL&V) is to sell its Process Group to FLSmidth for C$950 million and spin off its Water Treatment and Pulp and Paper Groups to shareholders.

GL&V Process, which includes Dorr-Oliver Eimco and the recently acquired Krebs International (see Filtration Industry Analyst, December 2006), employs about 1000 people and is expected to post a turnover of approximately C$523 million for the financial year ended 31 March 2007.

Dorr-Oliver Eimco was formed by the merger of Dorr-Oliver (GL&V acquired the Canadian and interna-tional activities in 1990 and 1999 respectively) and Eimco (acquired by GL&V in 2002).

Product groups within the GL&V Process business include mining, clarifiers/sludge collection, classify-ing/degritting, dissolved gas flotation, granular media fil-ters, pumps, screens, sludge concentration and dewater-ing, thickeners, vacuum fil-tration, pressure filtration, mineral flotation, treatment processes, heavy media separation and biological/aeration. Major markets for aeration. Major markets for

GL&V Process include alu-mina, chemical, food, miner-als, mining, power/flue gas desulfurization, recaust and steel.

FLSmidth says that the acquisition of GL&V Process enables the Danish company to realise the global growth strategy for its minerals activities - based on growing the Group’s minerals busi-ness to the same size and strength as its cement busi-ness. FLSmidth is currently present in all steps of mineral processing except the sepa-ration of liquids and solids. FFE Minerals, FLSmidth’s current minerals business, is an expert in pyro tech-nologies and in crushing and grinding of minerals, while GL&V Process specialises in the downstream separation processes.

GL&V’s board of direc-tors recommends that share-holders vote in favour of the transaction, which is sched-uled to close at the end of July 2007.

GL&V plans to transfer its Water Treatment, Pulp and Paper and Manufacturing groups into a new corporation which will list on the TSX Exchange and which will be spun off to GL&V share-holders. The new company’s mission will be to become a world leader in targeted industrial and municipal solutions, with a strong focus on the fast-growing environ-mental technology sector.mental technology sector.

CONTENTS COMPANY PROFILE 9–10 COMPANY WATCH 11–13 DIARY 15 DIVIDENDS 5 EXCHANGE RATES 16 FINANCIAL CALENDAR 14 IN BRIEF 4,5,6 NEWS 1,2,3,4,5,6,16 NPD 14ORDERS 8 PEOPLE 7 STOCK WATCH 15

MAY 2007ISSN 1365-6937www.filtsep.com

FLSMIDTH PAYS C$950MN FOR

GL&V’S PROCESS GROUP

COMMENTNorit’s strong product portfolio and exposure to the global water mar-ket make this an attractive acquisition for Doughty Hanson, with considerable growth potential. ■