Karl Herchenroeder
RW Monitor
2/5/2016
French waste group Veolia announced Wednesday that it has purchased California-based nuclear waste cleanup technology company Kurion for $350 million.
“With the addition of Kurion’s expertise and technology, Veolia is rounding out its portfolio of services to the nuclear industry and will now be able to provide all existing solutions and know-how in both nuclear facility cleanup and the treatment of low and medium-level radioactive waste,” the companies said in a joint press release.
In a conference call Wednesday, Kurion CEO William Gallo said discussions on the sale became serious in summer 2015, after the companies collaborated on the Fukushima Daiichi Nuclear Power Plant disaster recovery. “We have been in very deep discussions since mid-summer last year,” Gallo said, noting the two companies’ joint work on detritiation efforts, as well.
At Fukushima, the companies worked together to treat radioactive water resulting from the 2011 reactor meltdowns. Kurion was tasked with removing strontium from some 400,000 tons of contaminated water.
The deal is expected to be finalized in about two months, pending U.S. regulatory approval.
Veolia Chairman and CEO Antoine Frérot said in a statement that the acquisition will enable his company to “develop a world-class integrated offer in nuclear facility cleanup and treatment of low level radioactive waste around the world.”
“By having all the expertise and solutions that are indispensable for the treatment of this type of waste, our company is confirming that it is what it has always been: a pioneer in the treatment and recovery of waste and resources,” he said.
Kurion’s focus is waste treatment robotics, ion specific media, tritium removal, modular vitrification, and GeoMelt vitrification. Veolia specializes in heating and cooling networks for cities and universities, water treatment, and management of hazardous and commercial waste.
During the conference call, Veolia’s CEO listed two four-year objectives for the company. Frérot said that by 2020, Veolia aims to generate about €250 million of annual revenue related to low-level radioactive waste treatment and €150 million annually in revenue related to nuclear equipment decontamination.
“So we are aiming for €350 million to €400 million per year across the entire activity by 2020 and strong growth thereafter,” Frérot said.
During the call, Gallo said the entire Kurion management team will remain in place through the acquisition, and the intention is that the existing subsidiaries in the Veolia nuclear business will be combined with Kurion.
“One of the synergies we’re most interested in exploring are some of the technologies that Veolia already possesses in the water treatment area, but also in the hazardous waste area,” Gallo said. “We believe that between these Kurion technologies plus the operations orientation that Veolia has, this will indeed develop a very strong offer for us on a global basis.”
Frérot added that Gallo will serve as the new CEO of the new nuclear decontamination unit.
Founded in 2008 in Irvine, Calif., Kurion, a 200-employee company, specializes in three nuclear waste cleanup areas: separation, stabilization, and robotics. The company operates in the U.S., U.K., and Japan, serving as the only international operator at Fukushima on behalf of Japanese plant owner TEPCO.
"The dream when we started was deep technology, rapid growth and permanent global impact,” said Josh Wolfe, managing partner of Lux Capital, who founded and funded Kurion. “I was extremely impressed and persuaded by the vision of Veolia CEO Antoine Frérot for growth and permanence. I look forward to seeing positive headlines for years to come."
