Veolia Energy to Acquire Thermal North America, Inc.

06/12/07  • Energy

BOSTON, June 12, 2007- With an enterprise value of USD $788 million, the acquisition of TNAI represents Veolia Energy’s largest acquisition in North America to date.

Through its Trigen subsidiaries, TNAI is the owner and operator of the largest portfolio of district energy systems in the United States, serving more than 1,100 customers with a mix of energy products - electricity, steam, hot water and chilled water. Each Trigen company produces the energy products at a central utility plant and transmits them to its customers through its pipe distribution system. TNAI operates in 11 major U.S. cities - Atlanta; Baltimore; Boston; Kansas City; Las Vegas; Los Angeles; Oklahoma City; Philadelphia; St. Louis; Trenton, NJ; and Tulsa, Okla.

Founded 80 years ago, Veolia Energy, which includes its Dalkia affiliate, is a leading worldwide provider of energy services with more than 48,000 employees in 38 countries, and annual sales of €6.1 billion. It serves nearly 96,000 sites around the world, operates 682 district energy systems, and manages 4,000 MW of cogeneration plant capacity for its customers. Already the European market leader, Veolia Energy is focused on growth in North America, China, and the Middle East. To this end, Veolia Energy entered the North American market in 2003, and currently has operations in Boston, New York, Houston, Las Vegas, and Montreal.

"During the past two years, TNAI has forged eleven local district energy franchises into a centrally-managed, highly-focused owner and operator of community energy systems that serve marquee customers in cities across the US," said Lance Ahearn, Chief Executive Officer of The Trigen Companies. "With decades of district energy operating experience in Europe, Veolia will offer its unrivaled expertise and innovative best practices to the marketplace, and will become the major player in the United States once the acquisition is consummated."

"The acquisition is a positive development for Trigen's employees, customers and the communities we serve," added Mr. Ahearn. "Our customers will continue to be served locally by experienced staff at the central plants, but they will gain the financial support and expertise of a large, global company that is focused on providing energy services."

Conditions and approvals

The transaction is subject to customary closing conditions and approvals, including certain regulatory approvals and filings under the Hart-Scott-Rodino Antitrust Act.

About Veolia Environnement

Veolia Environnement (NYSE:VE) has operations in water, waste, energy and transportation management, has more than 270,000 employees in 64 countries and recorded revenues of $37.7 billion in 2006. Veolia Environnement's North American operations have 30,000 employees and produced sales of $3.5 billion in 2006.

About TNAI

TNAI, through its subsidiaries, The Trigen Companies, is a leader in combined heat and power generation, serving 1,100 customers in 11 cities from 22 central plants. Trigen's community energy systems generate steam, hot water, chilled water and electricity at central utility plants, and transmit these energy products to buildings served by a pipe distribution system. TNAI is owned by Thermal North America Holdings LLC, a privately held company.