Ember Infrastructure Management Completes Take Private of H2O Innovation

Ember Infrastructure Management, LP (“Ember”) has announced the successful completion of its acquisition of H2O Innovation Inc. (“H2O Innovation”) in a take-private transaction. The acquisition was led by entities controlled by funds and vehicles managed by Ember, in collaboration with Ontario Power Generation Inc. Pension Fund (“OPG”), Investissement Québec (“IQ”), Caisse de dépôt et placement du Québec (“CDPQ”), and key executives of the Company. The purchase price for the transaction was $C395 million.

With this acquisition, H2O Innovation is poised for an exciting new chapter, benefiting from the resources and expertise that Ember brings to the table. Frédéric Dugré, President, Chief Executive Officer and co-Founder of H2O Innovation, expressed his enthusiasm for the partnership, stating, "Together, we are well positioned to accelerate our organic growth and make strategic acquisitions that will further enhance our customer offering, enabling them to more efficiently use and protect our shared water resources."

Ember, a private equity firm based in New York City, recognizes the immense potential in supporting H2O Innovation's management team in building a leading integrated water solutions company. Elena Savostianova, Founder and Managing Partner of Ember, believes that H2O Innovation is well positioned to meet the growing needs of communities and businesses facing water resource challenges due to climate change and increased regulation.

As part of the transaction, Investissement Québec, previously the largest shareholder of H2O Innovation, rolled over its shares and increased its equity ownership in the Company. Additionally, Caisse de dépôt et placement du Québec and key executives of H2O Innovation rolled over significant portions of their shares.

The acquisition was facilitated by legal counsel from Weil, Gotshal & Manges LLP, Davies Ward Phillips & Vineberg LLP, Norton Rose Fulbright Canada LLP, Fasken Martineau DuMoulin LLP, and Blake, Cassels & Graydon LLP. Scotiabank Capital Inc. acted as the exclusive financial advisor to H2O Innovation, while Desjardins Capital Markets provided independent financial advice to the Special Committee of H2O Innovation. Raymond James served as the financial advisor to Ember.

About H2O Innovation:

H2O Innovation is a complete water solutions company that focuses on providing best-in-class technologies and services to its customers. The Company operates in three segments: Water Technologies & Services, Specialty Products, and Operation & Maintenance. Through innovation and expertise, H2O Innovation aims to simplify water for municipal and industrial water, wastewater, and water reuse customers. For more information, please visit www.h2oinnovation.com.

About Ember:

Ember is a private equity firm that invests in businesses delivering infrastructure solutions aimed at reducing carbon intensity, enhancing resource efficiency, and increasing resilience to climate impacts. With a focus on the energy transition, water, waste, and industrial sectors, Ember is headquartered in New York City. For more information, please visit www.ember-infra.com.

In conclusion, the completion of the take-private transaction between Ember Infrastructure Management and H2O Innovation marks a significant milestone for both companies. The partnership will enable H2O Innovation to expand its footprint and offer enhanced solutions to its customers, while Ember continues its mission of investing in sustainable infrastructure solutions. As the world grapples with the challenges of climate change and resource scarcity, collaborations like this will play a crucial role in addressing these issues and building a more sustainable future.