United Envirotech to acquire business of Memstar Technology for $293 million

WATER treatment company United Envirotech is to acquire the business and assets of membrane supplier Memstar Technology, for $293.4 million.

Memstar's membrane products have been used extensively by United Envirotech in its water and wastewater treatment projects.

If United Envirotech completes its purchase of Memstar, it will become a "vertically integrated water solutions provider" said a joint statement dated July 29 by both companies.

United Envirotech will be able to combine existing strong engineering and marketing capabilities in China and the global market, with Memstar's membrane technologies.

United Envirotech will not be starting from scratch: it had previously acquired a 13.2 per cent stake in Memstar, in January this year.

United Envirotech will fork out $73.4 million in cash to pay for a quarter of the acquisition.

The remaining three quarters, of $220.1 million, will be through issuing 200.1 million shares to Memstar, at $1.10 each.