US-based water utility SJW Group has closed the acquisition of Connecticut Water Service for $1.1bn.
The completion of the transaction makes Connecticut Water a wholly-owned subsidiary of SJW Group.
The combined company SJW Group the third-largest water utility among investor-owned entities on rate base in the United States, serving 1.5 m customers across California, Connecticut, Maine, and Texas.
The acquisition enhances SJW Group’s financial flexibility
The acquisition enhances SJW Group’s financial flexibility to increase sustained growth in its operating utilities’ rate bases and continue investments in water systems.
SJW Group chairman, president, and CEO Eric W. Thornburg said: “This transformative combination provides us with the financial strength, geographic and regulatory diversity and increased scale that we believe will enable growth and create sustainable shareholder value.
“We will have greater capacity to invest in infrastructure, enhanced technical resources to provide high quality water and wastewater service to customers and communities and additional career growth opportunities for our employees.”
The combined entity is expected to have an attractive, stable and higher earnings growth profile.
Connecticut Water president David Benoit said: “We will have the benefits of national scale while maintaining the experienced local leadership teams and employees to meet our customers’ needs.
“Our new team of 700+ local water professionals, led by a seasoned industry leadership team, is a powerful combination that will focus on serving customers and communities, driving long-term growth and delivering on our comprehensive set of commitments to all our stakeholders.”
The acquisition follows the satisfaction of all customary closing conditions, approval from Connecticut Water’s shareholders and regulatory approval by the Connecticut Public Utilities Regulatory Authority and the Maine Public Utilities Commission.
SJW Group’s headquarters will remain in San Jose, California, with its New England regional headquarters in Clinton, Connecticut.
The parent company of the Connecticut and Maine utility operating subsidiaries will retain the name of Connecticut Water Service.
