KKR to make follow-on investment in China water treatment firm

KKR will invest US$40 million in new shares to be issued by United Envirotech, a Singapore-based water treatment and recycling company focused on the Chinese market, according to a joint announcement Tuesday by the two companies.

The deal follows the U.S.-based private equity giant’s October 2011 investment in US$113.8 million of United Envirotech’s convertible bonds.

According to a news release, United Envirotech will use the proceeds from the new share sale, expected to close in March, for the acquisition of water treatment plants, the upgrade of existing plants and for working capital.

Funding for the investment will come from KKR’s $4 billion Asia I fund.