EQT has acquired a 42% shareholding in Kelda Holdings, the parent company of Yorkshire Water, via its EQT Active Core Infrastructure strategy. Financial details were not disclosed.
Yorkshire Water provides essential water and wastewater services to approximately 5.5 million individual customers, serving over two million homes and 140,000 businesses. It operates nearly 700 treatment works, 120 reservoirs and over 83,000km of mains across the Yorkshire region.
Yorkshire Water said it is investing “significant capital to deliver sustained improvement whilst increasing accountability”. EQT stated it “will look to play a leadership role in driving progress” alongside existing investors.
Following completion of the transaction, EQT said it will work in partnership with its co-shareholders and the company’s management team “to deliver sustainable operational improvements for the benefit of customers and the environment”. EQT added that it is committed to investing further equity “to strengthen the company’s balance sheet which will improve future financial resilience and support continued investment”.
EQT added that it is “fully supportive” of the plan to deliver the company’s largest ever environmental investment programme, with a total of £8.3bn (€10bn) dedicated to improving services and upgrading infrastructure throughout the region between 2025 and 2030.
Kunal Koya, partner at EQT Infrastructure, said: “Our strong track record as a long-term active owner of large infrastructure assets makes EQT a natural partner for Yorkshire Water.
“We believe that as a responsible private capital manager EQT can play an important role in modernising the UK’s water infrastructure, and the company’s multi-year investment plan reflects that objective.
“Together with Yorkshire Water’s existing investors, we will support the sector’s reform agenda and deliver service improvements for customers across the region and transparency for all stakeholders.”
Vanda Murray, chair, Yorkshire Water & Kelda Holdings, said: “We are delighted that EQT has decided to invest in Yorkshire Water. That decision is a strong endorsement of the strategy we are executing, the business plan we have in place, and the quality and experience of our management team.
“We are making encouraging progress on ‘Doing Right by Yorkshire’ as we continue to strengthen service, resilience and outcomes for customers and the environment, and EQT’s long-term, responsible approach to ownership is well aligned with our priorities. We look forward to working together as we build on that momentum and continue to deliver against our plans.”
Lord Stockwood, Minister for Investment, Department for Business and Trade and HM Treasury, said: “I warmly welcome this commitment from a leading global infrastructure investor. EQT’s decision to invest in the UK’s regulated water sector underlines the strength of our investment environment and the trust international partners place in the UK economy. It demonstrates that the UK remains one of the world’s most attractive destinations for long‑term, sustainable investment.”
The acquisition is conditional upon approvals including anti-trust.
