Utilities Acquisitions in 2020

Ontario Teachers' Pension Plan Board has agreed to acquire a 69.4% interest in Società Gasdotti Italia S.p.A (SGI) from Macquarie Infrastructure and Real Assets (MIRA) via Macquarie European Infrastructure Fund 4. SGI is Italy's largest independent gas transmission operator, and Ontario Teachers' says the investment aligns with its strategy to buy core regulated utility assets with predictable cash flows and to support the network's transition to renewable gases.

An affiliate of private equity firm First Reserve has agreed to acquire all outstanding shares of The Goldfield Corporation for $7.00 per share in cash via a tender offer, implying an enterprise value of approximately $194 million. Goldfield, a U.S.-based provider of electrical transmission and distribution maintenance services, will be taken private in a transaction unanimously approved by Goldfield's board and expected to close by January 2021.

Warren Equity Partners formed USA Water Holdings and, together with the platform, acquired Si Environmental (SIE) as the inaugural add-on to a buy-and-build water and wastewater platform. USA Water, based in Houston, will pursue consolidation of small and mid-sized water/wastewater utilities and O&M service providers while SIE will continue to operate as a subsidiary under its existing management.

Antin Infrastructure Partners has signed an agreement to acquire a majority interest in Miya Group from Bridgepoint. Miya is a global, efficiency-oriented water operator—the largest private water operator in Portugal with more than 700 employees—and Antin plans to support Miya's growth in water concessions, PPPs and efficiency projects across Europe and North America.

Funds managed by Morgan Stanley Infrastructure Partners (MSIP) have acquired Seven Seas Water, a provider of Water-as-a-Service (WaaS) desalination, water treatment and wastewater reuse solutions. The deal — a carve-out from AquaVenture Holdings (which was acquired by Culligan) — was supported by a senior credit facility arranged by Comvest Credit Partners to refinance existing debt and support the acquisition.

Sparks Holdings, Inc., an investment affiliate of Sparks Energy, Inc., acquired Echo Powerline, LLC, a Bunkie, Louisiana-based powerline construction and utility contractor. The deal expands Sparks' Gulf Coast market share and capabilities — Echo serves roughly 15 utility and government customers across Louisiana and Texas and will gain additional capacity and resources from Sparks.

Hawaii American Water acquired the assets and operations of Waimea Wastewater Company, becoming the wastewater service provider for approximately 217 residential and commercial connections, including North Hawaii Community Hospital and the Parker Ranch Center. Waimea Wastewater was a wholly owned subsidiary of Parker Ranch; the acquisition expands Hawaii American Water’s regulated service footprint on the Big Island of Hawaii (Hawaii American Water is a regional subsidiary of publicly traded American Water).

Illinois American Water has acquired the Village of Shiloh wastewater system for $3.6 million, adding approximately 1,515 wastewater customers to its southern Illinois service area. The Village voted in favor of the sale and the Illinois Commerce Commission approved the transaction; Illinois American Water plans investments to upgrade lift stations and expand service.

Bernhard Capital Partners Management, LP led a group of investors in the acquisition of Ascension Wastewater Treatment (AWT), the largest privately owned sewer utility operator in Louisiana. The buyer committed a two-month customer rebate (~$1.5 million total) and plans to invest in sewer infrastructure and expand AWT’s service footprint to additional communities to improve resiliency and service delivery.

Hunt Companies, together with Amber Infrastructure, acquired a majority interest in City Light & Power (CLP) from existing shareholders, with CLP management retaining a minority stake. CLP is an electrical contractor and owner/operator of utility distribution systems that provides services to the U.S. military under utility privatization contracts and operates nine utility systems plus two municipal P3 contracts in Long Beach and Lakewood, California.

HomeServe USA has acquired Chattanooga-based ServLine, a provider of water and sewer service line protection and leak adjustment programs serving rural utilities across 18 states. FourBridges Capital advised ServLine on the transaction; ServLine founders Mark Slater and Gerry Harstine exited in the sale to the HomeServe subsidiary of UK-listed HomeServe PLC.