Water Treatment - Oppurtunity Value System Homework-1

27/01/2012

The major organizations of industry

describe the water treatment space with

these activities.  We have consolidated

this list into 5 major segments which are

listed in problem 2.  

Q 2- The Value flow diagrams

Q 1.a-Associations Q 1.b-Activities

Osai Robinson Aniruddha Srinath1

J D Hoksbergen

Water Treatment - Oppurtunity Value System Homework-1

27/01/2012

Q 3-Companies that specalize

Tetra Tech Inc. provider of consulting, engineering, program management, construction

management and technical services focusing on resource management,

infrastructure and the environment.

Arcadis NV international company providing consultancy, planning, architectural design,

engineering and management services for infrastructure, water, environment

and buildings.

Aecom Technologies provider of professional technical and management support services for

commercial and government clients around the world.

Energy Recovery Inc develops, manufactures and sells energy recovery devices and pumps, and

related parts and services primarily for use in seawater desalination.

Watts water technology global manufacturer of products and systems focused on the control,

conservation and quality of water and the comfort and safety of the people

using itGorman-Rupp specializes in the manufacturing of pumps and motor control equipment

used in water, wastewater and many other industry segments.

United Utilities is a holding company. Through its subsidiaries, Co. is engaged in the

ownership and operation of water and wastewater services in the North

West of England.American water works provides approximately 15 million people with drinking water, wastewater

and other water-related services in over 30 states and two Canadian

provinces.York water company engaged in the business of impounding, purifying to meet or exceed safe

drinking water standards and distribute water.

Aqua America is the holding company for regulated utilities providing water or wastewater

services in Pennsylvania, Texas, North Carolina, Ohio, Illinois, New Jersey,

New York, Florida,Artesian resources provides water, wastewater and other services on the Delmarva Peninsula.

Co. distributes and sells water, including water for public and private fire

protection to residential, commercial, industrial, municipal and utility SJW Corp This company produces, purchases, stores, purifies, distributes,

wholesales, and sells water in California, Florida, Connecticut,

Casella Waste systems vertically integrated solid waste, recycling, and resource management

services company.

Clean Harbors, Inc provides a range of hazardous material management services, including the

packaging, collection, transportation, treatment and disposal of hazardous

and non-hazardous waste at Company-owned incineration, landfill, Progressive waste solns he Company provides non-hazardous solid waste collection and disposal

services to commercial, industrial, municipal and residential customers

Waste water

handling

Segment

Equipment and

machinery

Name

Design and

planning

Operations and

maintenance

Sales and

distribution

Description

Osai Robinson Aniruddha Srinath2

J D Hoksbergen

Water Treatment - Oppurtunity Value System Homework-1

27/01/2012

We found pure players in the following industry segments: operation and maintenance,

equipment and machinery suppliers, and sales and distribution. It was difficult finding pure

players in the design and planning, and waste management segments.  In the design and

management segments there are few public companies who provide exclusively water

treatment engineering services. There are however a great deal of private consulting firms

who are more pure-play companies.  In waste management segments we did not find any

pure players dealing with water-treatment wastes alone. There were general waste

companies which did accommodate water treatment wastes into their operations

Based the EBITDA margins listed above, the segments that contain the most value are sales

and distribution and operation and maintenance. These segments have EBITDA margins of

approximately  57% and 52% respectively. The other segments have margins that are much

lower, signifying that they do not capture significant value.

3 year

average5 year

average Year 0 Year -1 Year -2 Year -3 Year -4

Tetra Tech Inc.

10.92% 10.45% 11.24% 10.79% 10.73% 10.04% 9.46%

Arcadis NV

12.41% 12.29% 11.87% 12.00% 13.35% 12.70% 11.52%

Aecom Technologies

6.36% NA 6.60% 6.41% 6.06% NA NA

Energy Recovery Inc

13.97% 17.69% 0.56% 15.60% 25.75% 27.25% 19.30%

Watts water technology

11.25% 11.82% 12.47% 11.34% 9.94% 11.89% 13.47%

Gorman-Rupp

14.72% 13.91% 16.70% 13.28% 14.17% 13.25% 12.16%

United Utilities

55.66% 50.02% 57.95% 68.18% 40.85% 39.01% 44.13%

American water works

20.67% 19.72% 40.68% 17.88% 3.46% 12.59% 23.98%

York water company

59.01% 57.20% 62.45% 58.85% 55.73% 55.12% 53.83%

Aqua America

52.59% 52.16% 54.15% 52.55% 51.06% 50.46% 52.59%

Artesian resources

40.39% 40.60% 40.66% 41.14% 39.36% 40.10% 41.76%

SJW Corp

30.95% 32.08% 30.80% 30.23% 31.83% 31.54% 36.01%

Casella Waste systems

15.22% 15.40% 17.04% 20.96% 7.67% 14.38% 16.93%

Clean Harbors, Inc

14.42% 13.57% 16.95% 12.60% 13.72% 12.40% 12.19%

Progressive waste solns

26.70% 24.78% 29.85% 28.13% 22.12% 22.48% 21.32%

Waste water

handling

Segment

Equipment and

machinery

Name

EBITDA Margin

Design and

planning

Operations and

maintenance

Sales and

distribution

Q 4- EBITDA Margins

Q 5- Summary

Osai Robinson Aniruddha Srinath3

J D Hoksbergen

Water Treatment - Oppurtunity Value System Homework-1

27/01/2012

Osai Robinson Aniruddha Srinath4

J D Hoksbergen