Ancala Partners is buying a UK water company for £71.2m (€79.8m).
UK local water supply company Dee Valley Water has agreed a takeover.
In its latest financial results, Dee Valley’s revenue was £23.1m, with profit at £6.6m.
Ancala Partners, an independent infrastructure investment manager, focuses on core mid-market UK infrastructure assets.
The firm raised an initial £160m for a UK infrastructure vehicle – aiming to raise £400m – for its Mid-Market Infrastructure Platform.
The vehicle was backed by pension funds, Ancala said in February.
The firm’s investments include a natural gas and LPG distribution and supply business, a portfolio of solar sites and a developer, owner and operator of hydro power plants.
Spence Clunie, managing partner at Ancala, which has more than £650m in funds under management, said: “Ancala makes long-term investments in stable, mid-market-sized infrastructure assets in the UK on behalf of UK pension plans.
“Ancala views Dee Valley as a well-run and efficient water-only company that fits with the investment characteristics of Ancala’s mandate.”
Ian Plenderleith, chief executive at Dee Valley, said the acquisition was a good outcome for stakeholders, employees, customers and the wider regional economy.