Eversource Energy, a leading electric and gas utility company, has revealed its plans to sell its subsidiary, Aquarion Water Company, in a strategic decision. The company has entered into a Purchase and Sale Agreement with Aquarion Water Authority (AWA) for a total consideration of $2.4 billion, including $1.6 billion in cash and the elimination of $800 million in net debt upon closure.
This move is part of Eversource Energy’s efforts to focus on strengthening its core electric and gas businesses. The proceeds from the sale will be used to reduce the parent company’s debt and reinvest capital efficiently. This aligns with Eversource’s long-term strategic growth goals, including maintaining a target EPS growth of 5% to 7% until 2028.
Under Eversource’s ownership since 2017, Aquarion Water Company has shown exceptional performance in terms of service quality, reliability, and operational excellence. With strategic investments and acquisitions, Aquarion has expanded its customer base, improved service offerings, and solidified its position in the water utility sector.
The transaction is subject to regulatory approvals and is expected to close in late 2025. Citi and Morgan Stanley & Co. LLC provided financial advisory services to Eversource Energy, while Ropes & Gray LLP served as legal counsel. Barclays and Cravath, Swaine & Moore LLP acted as the M&A advisor and legal representative, respectively, for AWA.
This sale reflects Eversource Energy’s commitment to strengthening its regulated utility operations, managing capital efficiently, and driving sustainable growth in its core service areas. By divesting Aquarion Water Company, the company aims to optimize its portfolio, improve operational efficiency, and deliver value to its stakeholders and customers.
This article is based on information from the original article published on Techdows. For more details, read Eversource Energy’s 8K filing here. This article was generated by an automated content engine and reviewed by a human editor before publication.
For more information on Eversource Energy, a public utility holding company involved in the transmission and distribution of electricity and natural gas, visit their company profile.