Ancala Partners, the mid-market infrastructure investment manager, is buying Portsmouth Water for an undisclosed sum.
Ancala said it has agreed to acquire South Downs Capital, the parent company of the UK water utility company in a deal expected to complete in March.
Once completed, David Owens, an industry partner at Ancala and a former chief executive officer at Thames Water, will join the board of Portsmouth Water as a non-executive director.
Portsmouth Water provides water supplies to a domestic population of over 700,000, and wholesale water supplies to a wide range of industrial and commercial customers.
Ancala said the investment will allow the company to pursue growth opportunities by providing access to additional capital.
Lee Mellor, a partner at Ancala, said: “Portsmouth Water is an excellent fit with our core investment strategy, which targets mid-market infrastructure businesses that deliver long-term, inflation-linked cashflows.
”At a time when regulators are placing great focus on performance and efficiency, we are delighted to be acquiring one of the leading companies in the UK water sector.”
Mike Kirk, Portsmouth Water’s chairman said: “This is a positive development for Portsmouth Water and its customers, which preserves the company’s independence, whilst providing access to capital to further enhance the business, including the development of significant regional water resources.”