United Envirotech to acquire Memstar’s business and assets for S$293.4 million
United Envirotech Ltd and Memstar Technology Ltd have jointly announced that UEL is to acquire a 100% stake in Memstar Pte. Ltd., a wholly owned subsidiary of Memstar − as well as certain other assets from Memstar − for S$293.4 million.
UEL provides water treatment solutions via its proprietary advanced membrane technologies, such as membrane bioreactor technology and continuous membrane filtration (CMF) technology.
Memstar supplies PVDF hollow fibre membrane and membrane products, with manufacturing facilities in Singapore and China. Its membrane products have been used extensively by UEL in its water and wastewater treatment projects.
The acquisition will form a 'vertically integrated' water solutions provider, leveraging on both Memstar's proprietary membrane technologies and UEL's strong engineering and marketing capabilities in China and the global market. UEL had previously acquired a 13.2% stake in Memstar, in January 2013.
Dr Lin Yucheng, Chairman and CEO of UEL said, 'The transaction marks a new milestone for both companies. Memstar has been a long term supplier and partner of UEL. We look forward to working closely with the Memstar management team to capture the enormous growth opportunities, particularly in China's environmental and water treatment sector.'
Dr Ge Hailin, CEO of Memstar, commented, 'I strongly believe that this transaction will create a win-win situation for both UEL and Memstar.'
The transaction will be subject to the approval of the shareholders of both UEL and Memstar.