Suez North America

Suez North America
Subsidiary
Industry Utilities
Founded 1869
Headquarters Paramus, New Jersey, USA
Key people
 Eric Gernath
Products Water treatment, waste management
Revenue $764 million (2013)
Number of employees
 2,350 (2013)
Parent Suez Environnement
Website www.suez-na.com

Suez North America, founded as Hackensack Water Company in 1869 and later named United Water, is an American water service company headquartered in Paramus, New Jersey. It owns and operates 16 water and waste water utilities, and operates 90 municipal water and waste water systems through public-private partnerships and contract agreements.[1] The company has over 2,300 employees, and in 2013, United Water generated $764 million in revenue, and managed $3.2 billion in total assets.[1] United Water became a subsidiary of Suez Environnement, a French-based utility company, in 2000. It changed its name to reflect that of its parent company in 2015.

History

The company was founded as Hackensack Water Company in 1869 as a water supply and storage company serving the towns of North Hudson, Hoboken, and Hackensack. In 1983, Hackensack Water reorganized into United Water Resources, Inc., and in 1994 it acquired General Waterworks Corporation for $200 million.[2] In 2000, Suez Environnement acquired United Water.[3]

In April 2014, United Water was given a $5.5 million state tax break from the New Jersey Economic Development Authority to prevent the company from moving its headquarters out of New Jersey and into New York.[4][5] The company still planned to move out of Harrington Park, considering two New Jersey locations.[4] In June 2015, Suez Environnement opened their new North American Corporate Headquarters in Paramus, New Jersey. [6]

Activities

Water partnership model

At the 2012 meeting of the Clinton Global Initiative, United Water made a commitment to engage private investors and work with municipalities to establish agreements wherein the company would take over operations, maintenance, and capital improvement of water utilities in municipalities across the country, starting with Nassau County, New York and Bayonne, New Jersey.[7][8] This model won the Partnership Performance of the Year award at the 2012 American Water Summit.[9]

Bayonne

In December 2012, United Water and Kohlberg, Kravis, Roberts, together forming the Bayonne Water Joint Venture (BWJV), entered into a concession agreement with the Municipal Utilities Authority of Bayonne, New Jersey.[10] The 40-year agreement is a public-private partnership between the BWJV and the city in which the private partners pay off the Bayonne Municipal Utility Authority's (BMUA) $130 million debt and take over the operations, maintenance, and capital improvement of Bayonne's water and wastewater utilities in exchange for a regulated share of the revenue.[11][12][13] United Water is managing the operations for the partnership, while KKR is providing 90% of the funding.[14]

Nassau County

In June 2014, Nassau County announced that it had partnered with United Water to operate its three wastewater treatment plants and sewage collection system for 20 years. [15][16] In exchange for operating the wastewater system and providing at least $10 million in savings each year, Nassau County will pay United Water $57.4 million annually (adjusted for inflation).[17] The county's financial consultant on the agreement, the PFM Group, estimated savings over the term of the contract at $233.1 million, and up to $378.9 million when 'Synergy Savings', including reduced overtime and personnel reassignments, are taken into account.[15] Nassau County will maintain ownership of the wastewater system and jurisdiction over its utility rates, which are not expected to rise.[17]

See also

References

  1. 1 2 "About Us: Facts & Figures: By the Numbers". United Water. Retrieved 7 July 2014.
  2. ↑ "United Water Resources, Inc. History". Funding Universe. Retrieved 7 July 2014.
  3. ↑ "About Us: Corporate History". United Water. Retrieved 7 July 2014.
  4. 1 2 Morley, Hugh. "United Water, looking to move from Harrington Park headquarters, gets tax break to stay in N.J.". NorthJersey.com. Retrieved 7 July 2014.
  5. ↑ Sherman, Stacie. "New Jersey Authority Awards $21.8 Million of Business Tax Breaks". Bloomberg News. Retrieved 7 July 2014.
  6. ↑ http://www.nj.com/bergen/index.ssf/2015/09/united_water_seeking_to_sell_old_headquarters_for.html#incart_river
  7. ↑ "President Clinton Hosts President Barack Obama, Egyptian President Mohamed Morsi, and Governor Mitt Romney on Closing Day of 2012 Clinton Global Initiative Annual Meeting [Press Release]". Clinton Global Initiative. Retrieved 7 July 2014.
  8. ↑ Henning, Rich. "United Water Announces Commitment to Action at 2012 Clinton Global Initiative Annual Meeting [Press Release]". United Water. Retrieved 7 July 2014.
  9. ↑ Henning, Rich. "'Solution' Voted Best by Industry Peers at AWS [Press Release]". United Water. Retrieved 7 July 2014.
  10. ↑ Hack, Charles (July 23, 2012) "United Water to take over operations of Bayonne's water, sewer systems in $150 million deal". NJ.com
  11. ↑ Baumann, Joseph. "Bayonne Revisited: Water Partnerships One Year Later [Webinar]". Sustainable City Network. Retrieved 16 June 2014.
  12. ↑ Gao, Su (26 March 2013). "Can private equity fill the US water investment gap?". Bloomberg New Energy Finance: 1–11.
  13. ↑ Henning, Rich. "United Water and KKR Sign Unique Utility Partnership with City of Bayonne, NJ [Press Release]". United Water. Retrieved 7 July 2014.
  14. ↑ Corkery, Michael. "Private Equity Tries on the Hard Hat". The Wall Street Journal. Retrieved 7 July 2014.
  15. 1 2 "Mangano Announces Historic Public-Private Partnership To Operate County's Wastewater Treatment Plants & Sewage System". Nassau County, NY. Retrieved 7 July 2014.
  16. ↑ Henning, Rich. "Nassau County, NY Announces Historic Public-Private Partnership with United Water To Operate County's Wastewater Treatment Facilities & Sewage System". United Water. Retrieved 7 July 2014.
  17. 1 2 Larocco, Paul; Brodsky, Robert. "Nassau sewer system to be managed by NJ firm under multimillion-dollar deal". Newsday. Retrieved 7 July 2014.
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