New England’s largest energy company unites
with region’s largest private water company to serve nearly four
million customers combined in Connecticut, Massachusetts and New
Hampshire
In an acquisition that will combine New England’s largest energy
company with the region’s largest private water company, Eversource
Energy (NYSE: ES) today announced that it reached an agreement to
acquire Aquarion Water Company for an enterprise value of $1.675
billion, comprised of $880 million in cash and $795 million of
assumed Aquarion debt.
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“This transaction combines two companies that are leaders in
providing the critical infrastructure New England residents and
businesses need to grow and thrive,” said Jim Judge, chairman,
president and chief executive officer of Eversource. “Both
companies’ dedicated employees work relentlessly to put customers
first, and that commitment to reliability and customer service will
remain paramount.”
Aquarion is highly respected in the industry, with top customer
favorability ratings and an impressive team of more than 300
employees operating the region’s best water system. Eversource’s
committed 8,000 employees work tirelessly every day to provide
sustainable energy solutions and power the region’s economy,
serving 3.7 million electric and natural gas customers in
Connecticut, Massachusetts and New Hampshire. Aquarion serves
nearly 230,000 customers in the same states.
“Eversource has such strong local ties to New England, and a
commitment to operational excellence, customer service, and support
for the communities we serve,” said Chuck Firlotte, Aquarion
president and chief executive officer. “These are qualities we
share and will serve us well as we join with Eversource’s
incredible team of employees.”
Since 2007, Aquarion has been owned by a partnership led by
Macquarie Infrastructure Partners. Aquarion’s superior operational
performance earned the company a number one ranking among Northeast
water companies in recent customer satisfaction surveys. Eversource
is recognized as the top U.S. utility for its energy efficiency
programs, saving its customers nearly $1 billion and resulting in a
reduction of carbon dioxide emissions by
three-quarters-of-a-million tons annually.
Judge noted the transaction underscores Eversource’s commitment
to be a catalyst for helping New England meet its environmental and
sustainability goals. “Welcoming Aquarion to our team provides an
exciting opportunity to add a new, highly complementary business
line that delivers high quality water at affordable rates,” added
Judge. “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 requires approval from the Connecticut Public
Utilities Regulatory Authority, the Massachusetts Department of
Public Utilities and the New Hampshire Public Utilities Commission.
It also requires U.S. Justice Department review under the
Hart-Scott-Rodino Act. The transaction is expected to close by
December 31, 2017.
Eversource intends to finance the transaction with a combination
of cash and a small amount of debt.
Evercore is acting as exclusive financial advisor and Ropes
& Gray LLP is acting as legal counsel to Eversource.
About Eversource:
Eversource (NYSE: ES) transmits and delivers electricity and
natural gas for approximately 3.7 million electric and natural gas
customers in Connecticut, Massachusetts and New Hampshire.
Recognized as the top U.S. utility for its energy efficiency
programs by the sustainability advocacy organization Ceres,
Eversource harnesses the commitment of its approximately 8,000
employees across three states to build a single, united company
around the mission of safely delivering reliable energy and
superior customer service. For more information, please visit our
website (www.eversource.com) and follow us on Twitter
(@EversourceCorp) and Facebook (facebook.com/EversourceEnergy).
About Aquarion Water Company:
Aquarion Water Company is the public water supply company for
more than 625,000 people in 51 cities and towns throughout
Connecticut, as well as serving customers in Massachusetts and New
Hampshire. It is the largest investor-owned water utility in New
England and among the seven largest in the U.S. Based in
Bridgeport, Conn. It has been in the public water supply business
since 1857. Across its operations, Aquarion strives to act as a
responsible steward of the environment and to assist the
communities it serves in promoting sustainable practices.
For more information on Aquarion Water Company and its
subsidiaries, please visit www.aquarionwater.com or
www.facebook.com/aquarionwater.
Forward Looking Statement: This news release includes
statements concerning Eversource Energy’s expectations, beliefs,
plans, objectives, goals, strategies, assumptions of future events,
future financial performance or growth and other statements that
are not historical facts. These statements are “forward-looking
statements” within the meaning of the Private Securities Litigation
Reform Act of 1995. In some cases, readers can identify these
forward-looking statements through the use of words or phrases such
as “estimate, “expect,” “anticipate,” “intend,” “plan,” “project,”
“believe,” “forecast,” “should,” “could” and other similar
expressions. Forward-looking statements involve risks and
uncertainties that may cause actual results or outcomes to differ
materially from those included in the forward-looking statements.
Factors that may cause actual results to differ materially from
those included in the forward-looking statements include, but are
not limited to, cyber breaches, acts of war or terrorism, or grid
disturbances; actions or inaction of local, state and federal
regulatory, public policy and taxing bodies; changes in business
conditions, which could include disruptive technology related to
Eversource’s current or future business model; changes in economic
conditions, including impact on interest rates, tax policies, and
customer demand and payment ability; fluctuations in weather
patterns; changes in laws, regulations or regulatory policy;
changes in levels or timing of capital expenditures; disruptions in
the capital markets or other events that make Eversource’s access
to necessary capital more difficult or costly; developments in
legal or public policy doctrines; technological developments;
changes in accounting standards and financial reporting
regulations; actions of rating agencies; and other presently
unknown or unforeseen factors.
Other risk factors are detailed in Eversource’s reports filed
with the Securities and Exchange Commission (SEC) and updated as
necessary, and are available on the SEC’s website at www.sec.gov.
All such factors are difficult to predict and contain uncertainties
that may materially affect Eversource Energy’s actual results many
of which are beyond our control. You should not place undue
reliance on the forward-looking statements; each speaks only as of
the date on which such statement is made, and, except as required
by federal securities laws, Eversource Energy undertakes no
obligation to update any forward-looking statement or statements to
reflect events or circumstances after the date on which such
statement is made or to reflect the occurrence of unanticipated
event.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20170602005380/en/
EversourceMedia Inquiries:Caroline Pretyman,
617-424-2460caroline.pretyman@eversource.comorInvestor
Inquiries:Jeff Kotkin,
860-665-5154Jeffrey.kotkin@eversource.comorAquarion Water
CompanyMedia Inquiries:Peter Fazekas,
203-336-7651pfazekas@aquarionwater.com
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