Siemens Water acquisition sets up marketing dilemma

Siemens’ takeover of Cambridge Water Technology will enable the company’s clarification technology to find much wider application than its traditional eastern US stronghold.

CWT’s systems use magnetite as a ballasting agent, enabling significant capacity increases at existing activated sludge plants, and smaller footprints at new installations.

“We’re a small company that hasn’t had the resources to penetrate a larger market,” CEO Charles Hamlin explained to GWI. “The horsepower of Siemens will enable us to take this technology global, and the consulting engineering community is now embracing it, which is driving demand.”

CWT is currently owned by management and private equity, believed to include Credit Suisse vehicle Ospraie Special Opportunities.

Around 75% of the company’s installed base is municipal, but the company is seeing increasing interest from industrial clients, Hamlin explained.

The fact that CWT’s technology competes effectively with MBRs on price will provide an interesting dilemma for Siemens’ marketing team.