Exeter's Pennon Group reveals deal to buy SES Water
Exeter-based Pennon, which owns South West Water, Bristol Water and Bournemouth Water, revealed this week it had acquired Sutton and East Surrey Water plc (SES Water) from its Japanese owners, saying the deal underlined its "commitment" to the UK water industry.
Redhill, Surrey-headquartered SES Water is a drinking water only supplier in the south east, supplying around 745,000 customers across east Surrey, west Sussex, west Kent and South London.
It was put up for sale last year by owners Sumisho Osaka Gas Water UK Limited.
SES Water was acquired by Pennon, along with other ancillary businesses from Sumitomo Corporation and Osaka Gas, for a total enterprise value of £380 million, it was reported.
Susan Davy, CEO of Pennon Group, described the acquisition as a "fantastic growth opportunity".
"As part of the Pennon Group, we will enhance SES Water’s financial resilience and better position the business to serve its customers and all stakeholders, as has proven to be the case with our acquisitions of Bournemouth Water and Bristol Water," she said.
"We are able to invest in SES Water’s resources infrastructure, environment and people thanks to our strong financial performance and long-term UK shareholder base, delivering a seamless transition for SES Water’s customers while also providing an even more robust and reliable service to customers.
"Having submitted our biggest investment plan of £2.8 billion from 2025-30 to date, a plan which will create 2,000 new jobs and improve long-term water resilience, the acquisition of SES Water comes at a time of great promise for our business, and I am looking forward to this next exciting chapter in our development."
The deal is still subject to approval from the Competition and Markets Authority, and if it gets the nod,
Pennon said it intended to provide an equity injection to enhance SES Water’s financial resilience, bringing its gearing from 88% to within Pennon’s gearing range of 55% to 65%, giving customers "assurance that SES Water can invest sustainably over the long term in infrastructure and services".
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