U.S. Water trucks in Tonka to boost flowsheet
Published September 14th, 2017
U.S. Water’s purchase of water treatment systems supplier Tonka Water from private equity house Meriwether Capital will enable it to be more cost-effective in the way it delivers industrial water projects, CEO LaMarr Barnes told GWI this week.
The U.S. Water boss noted that the deal brings a greater level of vertical integration, particularly when it comes to treatment projects with higher flow rates, given that in some cases, U.S. Water has previously had to buy in equipment from third-party vendors like Tonka to deliver the kind of bespoke water projects its industrial client base is increasingly demanding.
Going forward, U.S. Water sees clear potential to ramp up Tonka’s recurring revenues, which currently account for around 10% of its largely municipal revenue base. “We want to maintain their strong growth rate in the municipal drinking water market and expand their growth rate in consumable sales,” Barnes told us.