Aqua America agrees to acquire multi-platform entity Peoples

 Aqua America Inc., a regulated water and wastewater utility, announced it will acquire Peoples in an all-cash transaction that reflects an enterprise value of US$4.275 billion, which includes the assumption of approximately US$1.3 billion of debt.

Peoples consists of Peoples Natural Gas Company LLC, Peoples Gas Company LLC and Delta Natural Gas Company Inc. The multi-platform entity brings together the second-largest U.S. water utility and fifth-largest U.S. stand-alone natural gas local distribution company (based on customers), and will serve 1.74 million customer connections, which represent approximately 5 million people.

Aqua will acquire Peoples from infrastructure funds managed by Sausalito, California-based SteelRiver Infrastructure Partners.

The transaction is subject to regulatory approvals, including approval by the public utility commissions in Pennsylvania, Kentuckyand West Virginia. Assuming fulfillment of those conditions, closing of the transaction is expected in mid-2019.

Moelis & Company LLC is serving as the lead financial advisor to Aqua. Goldman Sachs & Co. LLC and RBC Capital Markets are also serving as financial advisors to Aqua, and Goldman Sachs Bank USA and Royal Bank of Canada are providing the fully committed bridge facility. Simpson Thacher & Bartlett LLP is serving as legal advisor to Aqua.

Morgan Stanley & Co. LLC is serving as financial advisor to the seller, and Winston & Strawn LLP is the seller’s legal advisor.