Shardul Amarchand Mangaldas advises SUEZ on its acquisition of Driplex Water Engineering
Shardul Amarchand Mangaldas & Co (SAM & Co) acted as the legal counsel to Suez Environnement and Degremont in the acquisition of majority stake in Driplex Water Engineering and Driplex Water Engineering International. SUEZ is a France-based € 15 billion business group, and a global leader in management solutions for the entire water and waste cycle.
The SAM & Co Team conducted legal due diligence on the target companies, drafted and negotiated the share purchase agreement, shareholders agreement and other related documents. The M&A Team of Shardul Amarchand Mangaldas was led by Mr. Amit Kumar, Partner and included Mr. Saurav Kumar, Partner, Mr. Varun Sehgal, Principal Associate, Mr. Harman Walia, Associate and Ms. Manika Mishra, Associate.
As a part of the transaction, Suez Environnement India Private Limited and Degremont Private Limited (both ultimate subsidiaries of SUEZ, France), have purchased majority shares of Driplex Water Engineering Private Limited and Driplex Water Engineering International Private Limited (Target Companies) from the Promoters (Sellers). It was a downstream investment by subsidiaries of a foreign company and the issues related to FDI were also handled by the SAM & Co Team.
Driplex, an Indian company, is a leading player in the industrial water treatment market. Founded in 1974 and headquartered in New Delhi, the company offers value-added water treatment solutions for industrial customers in India and overseas. It is a specialist in engineering, design, manufacturing and commissioning of effluent and process water treatment plants for the Power, Oil & Gas (Refinery) and other industrial sectors, in which it has achieved a strong reputation, both within India and overseas.
With this acquisition, SUEZ extends its footprint and capabilities to respond more effectively to India’s increasing industrial water demand and stringent environmental regulations. SUEZ will benefit from commercial and technological complementarities which will allow it to offer a complete portfolio of solutions and technologies to industrial customers. In addition, SUEZ will also benefit in reinforcing its manufacturing capacities in India, aligned with the “Make in India” initiative, as Driplex has a few manufacturing plants in the country.
Lincoln International acted as the financial advisor to SUEZ Group and Desai & Diwanji acted as an advisor to Mr. K.L. Jain and his family.