Capstone quenches thirst with Bristol Water

Capstone Infrastructure has bought 70% of UK-based Bristol Water for $215m, giving the company a ‘platform investment’ in water infrastructure.

Capstone Infrastructure Corporation has acquired a substantial stake in UK utility Bristol Water, Capstone said.

Toronto-headquartered Capstone bought a 70 percent interest in Bristol Water from Suez Environment via its subsidiary, Sociedad General de Aguas de Barcelona (AGBAR), for $215 million.

The purchase was funded through cash, an existing credit facility and a $150 million senior debt facility.

Capstone called the acquisition a “platform investment,” citing Bristol Water as a “new infrastructure category” for its portfolio that would allow for further investment in water infrastructure globally.

A Capstone spokeswoman declined to identify other businesses the company might be considering for acquisition.

Suez will continue to hold a 30 percent stake in Bristol Water through AGBAR.

Earlier this week, another North America infrastructure investor – Alinda Capital Partners – also dipped into the UK water infrastructure market.

Alinda bought Cambridge Water, a utility supplying water and other services to Cambridge, UK. The seller was British bank HSBC, but the purchase price was not disclosed. 

Cambridge Water had audited gross assets of close to £62 million (€72 million; $111 million) as at December 31, 2010.