Ember Infrastructure Completes Take Private of H2O Innovation
Posted on 12/22/2023
Revealed on December 8, 2023, Ember Infrastructure Management, LP announced the completion of the previously announced acquisition of H2O Innovation Inc. by an entity controlled by funds and vehicles managed by Ember, with the participation of Ontario Power Generation Inc. Pension Fund (“OPG”), Investissement Québec (“IQ”), Caisse de dépôt et placement du Québec (“CDPQ”) and key executives of the Company, for a purchase price of C$ 395 million.
“Closing this transaction marks the start of an exciting chapter for H2O Innovation, as we continue our expansion with the resources and expertise that our new partners at Ember can bring to the Company and our customers,” said Frédéric Dugré, President, Chief Executive Officer and co-Founder of H2O Innovation. “Together, we are well positioned to accelerate our organic growth and make strategic acquisitions that will further enhance our customer offering, enabling them to more efficiently use and protect our shared water resources. Today, our nearly 1,100 employees, united by our strong corporate culture, join me in the pursuit of continued growth and the enthusiastic undertaking of the opportunities ahead.”
“We at Ember see an important and attractive opportunity to support H2O Innovation’s management in continuing to build a leading integrated water solutions company, focused on providing best-in-class technologies and services to its customers,” said Elena Savostianova, Founder and Managing Partner of Ember. “Communities and businesses alike are faced with strained water resources as a result of climate change, new requirements associated with increased regulation, and stakeholder demand for improved resource stewardship. We believe H2O Innovation is very well positioned to meet these needs for its customers as it continues to grow its footprint and the scope of its solutions.”
As part of this transaction, IQ, previously the largest shareholder of H2O Innovation, rolled over all of its H2O Innovation shares and increased its equity ownership in the Company. Furthermore, CDPQ and the key executives of H2O Innovation have rolled over significant portions of their H2O Innovation shares.
Advisors
Weil, Gotshal & Manges LLP and Davies Ward Phillips & Vineberg LLP served as legal counsel to Ember, Norton Rose Fulbright Canada LLP served as legal counsel to H2O Innovation, Fasken Martineau DuMoulin LLP served as legal counsel to IQ and Blake, Cassels & Graydon LLP served as legal counsel to CDPQ. Scotiabank Capital Inc. acted as exclusive financial advisor to H2O Innovation and Desjardins Capital Markets acted as independent financial advisor to the Special Committee of H2O Innovation. Raymond James acted as financial advisor to Ember.
