Algonquin Fills Out U.S. Portfolio with Park Water
On 19 September 2014, Algonquin Power & Utilities Corporation of Ontario, Canada announced an agreement with California- based Carlyle Infrastructure to purchase 100% of Park Water Company shares for US$327 million (including assuming US$77 million of debt)– equal to 9.6x 2013 EBITDA. The deal is expected to close by the second half of 2015.
Park Water is comprised of three private water utility companies: Park Water (Los Angeles), Apple Valley Ranchos (Apple Valley, California), and Mountain Water (Missoula, Montana) that serve 74,000 connections in total. Carlyle purchased the water utility group in 2011 for $102.2 million from the Wheeler family.
Algonquin Power is present in the US as an investor-owned utility (IOU) since 2001 when it began acquiring regulated utilities under its combined entity Liberty Utilities. Liberty Utilities provides water services in five states with approximately 95,000 customers.
- Algonquin gain entry to largest state market through Park Water, completes multi-utility offering
- Liberty Utilities to navigate eminent domain challenges in Montana, California
- Park Water acquisition positions Liberty among top 10 IOUs, future deals likely smaller