U.S. Filter Gains Land, Water Rights in Bass Family Deal

U.S. Filter Corp. on Monday said it acquired about 50,000 acres of land and water rights in California and the Southwest from companies owned by the Bass family for about $250.5 million in stock and warrants to purchase 1.2 million more U.S. Filter shares.

The transaction will allow the Palm Desert-based provider of equipment and systems for treating water and waste water to broaden its agricultural services.

“We now add the most important product--the water--to our one-stop-shop business strategy,” Richard Heckmann, U.S. Filter’s chairman, chief executive and president, said in a statement.

The company said it expected rental income from farming on the acquired properties to be enough to prevent dilution of per-share value.

U.S. Filter’s stock rose $2.94 to close at $34.25 on the New York Stock Exchange.

“It’s a bet that he’s [Chairman Heckmann] going to be successful with this bet on agricultural water usage and water rights,” said Mike Hoffman, Credit Suisse First Boston Ltd. analyst.

The acquisition includes Western Farms LP, owned by Ed and Lee Bass, members of the Bass family of Fort Worth, Texas, which made its fortune in oil. The land acquired includes 45,000 acres in the Imperial Valley in California and the associated water rights, mostly from the Colorado River, and more than 5,000 acres in other parts of the Southwestern U.S.