Eversource Stepping Out of Water, Offering Up Utility Platform Opportunity

26 Feb 2024
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On 13 February 2024, Boston, Massachusetts-based Eversource announced its intention to divest its Aquarion Water Company. Aquarion is an investor-owned water and wastewater utility (IOU) acquired in 2017 for US$1.65 billion from a partnership led by Macquarie Infrastructure Holdings. Eversource reported a US$442.2 million loss in its 2023 earnings report, which included a US$1.9 billion tax impairment related to its offshore wind investments.

In 2023, Aquarion had a rate base of US$1.3 billion and generated US$33.1 million in net income with a company of 350 staff members. Although a timeline and process for divestment have not been disclosed, the Aquarion water and wastewater services platform will attract significant attention from strategic investors and financial and private equity (PE) firms. Curiosity from water industry outsiders will likely be kindled as well, given the size and multistate geographic footprint of the regulated water utility.

In this Research Note:

  • Rare water utility platform opportunity emerges in New England
  • With only 12 acquisitions under its belt, Eversource has limited imprint on water
  • Connecticut, Aquarion’s largest market, presents regulatory headache

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