Boston, Massachusetts-based Eversource Energy has agreed to acquire Aquarion Water Company from Connecticut for $1.675bn.
The transaction amount includes $880m in cash and $795m for assumed debt of Aquarion. Aquarion Water with a workforce of 300, is claimed to have earned top customer favourability ratings in the region. The company has a customer-base of around 230,000 in the states of Connecticut, Massachusetts and New Hampshire.
Aquarion has been owned by a partnership led by Macquarie Infrastructure Partners, since 2007. Its high quality operational performance has received number one ranking among Northeast water companies in the recent customer satisfaction surveys.
Eversource stated that it recognised the company’s energy efficiency programmes which have saved nearly $1bn for its customers and resulted in an overall reduction of carbon dioxide emissions by three-quarters-of-a-million tons per year.
Eversource chairman, president and CEO Jim Judge said: “This transaction combines two companies that are leaders in providing the critical infrastructure New England residents and businesses need to grow and thrive.
“Both companies’ dedicated employees work relentlessly to put customers first, and that commitment to reliability and customer service will remain paramount.”
Aquarion president and CEO Chuck Firlotte said: “Eversource has such strong local ties to New England, and a commitment to operational excellence, customer service, and support for the communities we serve.
“These are qualities we share and will serve us well as we join with Eversource’s incredible team of employees.”
According to Eversource, through the acquisition, the company aims to be a catalyst in helping New England meet its environmental and sustainability goals in the coming years. Aquarion’s team can add highly complementary business line that can deliver high quality water at an affordable price.
Judge said: “For Aquarion, becoming a part of Eversource ensures local ownership that is committed to providing the resources needed to make investments in the business to drive long-term success.”
The acquisition, which requires approval from the Connecticut Public Utilities Regulatory Authority, the Massachusetts Department of Public Utilities and the New Hampshire Public Utilities Commission and also from the US Justice Department review under the Hart-Scott-Rodino Act, is expected to be completed by the end of 2017.