Alinda Agrees to Sell South Staffordshire Water in the UK
May 20, 2013
Alinda Capital Partners announced today that, following a competitive auction, investment funds it manages have agreed to sell South Staffordshire Group to an investment group led by Kohlberg Kravis Roberts & Co. L.P.
The South Staffordshire Group is a leading operator in the UK water sector, owning two recently merged regulated water supply companies (South Staffordshire Water and Cambridge Water) and providing a range of specialist services to customers in the water and other infrastructure sectors through its non-regulated businesses.
The regulated business operates in two water supply regions, with South Staffordshire Water serving a population of 1.3 million in the West Midlands, and Cambridge Water serving a population of 0.3 million in East Anglia. The Group operates a number of non-regulated services businesses, principally comprising SSI Services, Echo and OWC. SSI Services provides clean water, waste water and water hygiene services and includes Omega Red, a leader in the design, supply, installation, testing and maintenance of electrical earthing and lightning protection systems in the UK. Echo provides customer contact management services, customer billing services and debt management services. In addition, Echo licences its proprietary billing and customer care system called RapidXtra to other UK water utilities. OWC is an office water cooler business.
The existing management of the Group will remain with the business following the sale. The transfer of ownership will not affect the operation or employees of the business and the current high levels of service will continue to be provided to the customers of both the regulated business and the non-regulated service companies.
Completion of the transaction is subject to, inter alia, EU Merger Regulation approval. The financial terms of the transaction have not been disclosed.
Chris Beale, Managing Partner of Alinda, said: “South Staffordshire Water and Cambridge Water have been in business for 160 years, and will continue to be in business for many years to come, providing essential water supply services to customers. We are proud to have been associated with them. They have been recognised by Ofwat for delivering high quality service at a low cost, and we anticipate that they will continue to be among the top performers in the water industry.”
The sale closed on July 30, 2013