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Severn Trent completes £62m water purification sell off

Severn Trent has completed the sale of its water purification arm to its joint venture partner Industrie de Nora.

The £62 million deal, which was announced in May this year, has been concluded and sees the group’s £50.8 million share settled through a cash payment of £12.6 million and the settlement of net intercompany debt.

When the sale was announced, Severn Trent chief executive Liv Garfield said: “This sale will allow us to focus on our core water and waste water service businesses in the UK and abroad.”

She added that although a number of improvements have been made to the water purification arm over the previous 18 months, including upgrades to sales processes and contract management, “it’s clear that in order for the business to fulfil its growth potential it needs manufacturing and product expertise and focus so it’s the right time for it to have a new owner”.

Industrie De Nora chief executive Paolo Dellachà, said the deal would “speed up the consolidation and enlargement of our product offering”.