Toronto-based Capstone Infrastructure Corporation has acquired a 70 per cent interest in Bristol Water, a regulated water utility in the United Kingdom, from Suez Environnement through its subsidiary, AGBAR (Sociedad General de Aguas de Barcelona), for approximately $215 million.
“Bristol Water is an established, core infrastructure business with regulated and predictable inflation-linked cash flow and a strong growth profile in a stable OECD country, making it an ideal complement to our existing portfolio,” said Michael Bernstein, Capstone’s president and CEO. “This is a platform investment that builds on our international footprint, diversifies our portfolio by infrastructure category, and is expected to contribute to the long-term sustainability of our dividends to shareholders. We are equally delighted to partner with AGBAR, which brings more than 140 years of experience in the water sector globally and shares our commitment to quality service, outstanding performance and efficient, environmentally responsible operations.”
Suez, through its subsidiary AGBAR, will continue to hold a 30 per cent interest in Bristol Water. AGBAR, which is headquartered in Spain with operations in nine countries, is approximately 75 per cent owned by Suez, which is a world leader in water and waste management services. AGBAR will continue to provide strategic counsel on trends and operational innovations within the global water services industry under an operational and management agreement.
Capstone’s portfolio also includes investments in gas cogeneration, wind, hydro, biomass and solar power generating facilities, representing approximately 370 megawatts of installed capacity, and a 33.3 per cent interest in a district heating business in Sweden.