Prevailing Desal Trends Spur IDE Divestment
Israel Chemicals Ltd (ICL) announced on 11 November 2014 that it is placing its 50% stake in IDE Technologies up for sale. The remaining 50% of IDE is held by Israel- based Delek Group, which is expected to follow suit. At the end of October, IDE reduced staff in Israel by 50 employees, signaling uncertainty for the pure-play water solutions provider. IDE revenues for the first half of 2014 have been reported to be US$112 million.
The IDE announcement was preceded by ICL’s 26 October 2014 agreement to sell its water treatment business to Kurita Water Industries of Japan. Kurita will purchase the APW business unit that produces active ingredients, formulations and customized water treatment solutions for use by industries and municipalities for US$317 million.
- Inherent market constraints spark proposed IDE divestment
- Industrial water solutions prescribed to bolster global presence
- Potential suitors poised to leverage IDEs demonstrated water solutions