Algonquin Power & Utilities Corporation’s (APUC), through its regulated utilities business Liberty Utilities, has completed the acquisition of Park Water, which owns and operates three regulated water utilities in Southern California and Western Montana.
The Toronto-listed company had first announced it would be buying the business from The Carlyle Group in September 2014. Total consideration for the utility purchase was $327 million, including the assumption of approximately $77 million of existing long-term utility debt, Algonquin said in a statement.
“The acquisition of Park Water strategically expands our utility presence in the United States,” APUC chief executive Ian Robertson said. “The acquisition builds on our strong water utility expertise, provides continuing opportunity for organic growth, and increases the proportion of our earnings from long-term, stable utility assets.”
The three utilities that comprise Park Water serve approximately 74,000 customer connections and have more than 1,000 miles of distribution mains.
Carlyle acquired California-based Park Water Company in December 2011 through Carlyle Infrastructure Partners, a $1.1 billion 2006-vintage fund that invests in public and private infrastructure projects in the US and Canada.
Headquartered in Oakville, Ontario, APUC owns and operates a diversified $3.6 billion portfolio of regulated and non-regulated utilities in North America, covering the water, electricity, natural gas, renewable and thermal energy sectors.
The Carlyle Group, based in New York, is a global alternative asset manager that invests across four platforms – corporate private equity, real assets, global market strategies and solutions worldwide. As of September 30, 2015, Carlyle had $188 billion of assets under management across 126 funds and 160 fund of funds vehicles.