Eversource Energy Announces Sale of Aquarion Water Company

Eversource Energy, a leading utility company, recently disclosed its intention to sell Aquarion Water Company, a subsidiary, in a strategic move. This decision follows the signing of a Purchase and Sale Agreement with Aquarion Water Authority (AWA) for approximately $2.4 billion, including $1.6 billion in cash and the elimination of $800 million in net debt upon closure.

The sale marks a significant step for Eversource Energy, emphasizing its focus on strengthening its core electric and gas businesses. The company aims to utilize the proceeds to reduce parent company debt and reinvest capital efficiently. Furthermore, the transaction aligns with Eversource’s long-term strategic growth objectives, including maintaining an EPS growth target of 5% to 7% until 2028.

Since its acquisition in 2017, Aquarion Water Company has demonstrated exceptional service quality, reliability, and operational excellence under Eversource’s ownership. Through strategic investments and acquisitions, Aquarion has expanded its customer base, enhanced service offerings, and solidified its position in the water utility sector.

The transaction, subject to regulatory approvals from key authorities, is expected to close in late 2025. Financial advisory services for Eversource Energy were provided by Citi and Morgan Stanley & Co. LLC, while legal counsel was offered by Ropes & Gray LLP. On the other hand, Barclays served as the M&A advisor to AWA, with legal representation by Cravath, Swaine & Moore LLP.

Overall, this sale underscores Eversource Energy’s commitment to fortifying its regulated utility operations, ensuring efficient capital management, and driving sustainable growth in its core service areas. By divesting Aquarion Water Company, Eversource aims to optimize its portfolio, enhance operational efficiency, and deliver value to its stakeholders and customers.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Eversource Energy’s 8K filing here.

Eversource Energy Company Profile

Eversource Energy, a public utility holding company, engages in the energy delivery business. The company operates through Electric Distribution, Electric Transmission, Natural Gas Distribution, and Water Distribution segments. It is involved in the transmission and distribution of electricity; solar power facilities; and distribution of natural gas.