Dutch energy company Nuon has completed the sale of its American water company Utilities Inc. to Hydro Star. Nuon and Hydro Star came to an agreement for the sale of the water company in May 2005 and the transaction has now been completed following approval by the American authorities.
The sale is in line with Nuon’s strategy of focusing on energy activities in its core countries – the Netherlands, Belgium and Germany. The transaction will realize a modest book profit, the company said.
The turnover of Utilities Inc. was $90 million in 2005 and the company has about 300,000 customers in 17 American states, mainly Florida and North and South Carolina.
Hydro Star is a subsidiary of AIG Highstar Capital, a private equity fund which invests in infrastructure-related assets and is sponsored by global insurance giant AIG’s Global Investment Group.