Investment firm EQT is acquiring water and wastewater treatment solutions firm Seven Seas Water from Morgan Stanley Infrastructure Partners (MSIP).
The EQT Infrastructure VI fund has invested an unspecified amount to acquire the company that builds, owns and operates water and wastewater treatment plants across the US, Caribbean and Latin America, with over 220 plants currently under management.
EQT said the transaction will bring the EQT Infrastructure VI fund’s investment level to around 50-55%, accounting for all confirmed and pending deals.
Alex Darden, partner and head of EQT’s infrastructure advisory team Americas, said: “EQT has followed Seven Seas and the water sector closely for many years, recognising the strong thematic tailwinds supporting the industry. Seven Seas provides critical access to potable water in areas where a large portion of the population would otherwise not have access to clean water and wastewater infrastructure.
“We’re excited to join forces with the Seven Seas team to help drive more efficient water and wastewater management and fulfill their mission to expand access to clean, affordable water in the communities where it is needed the most.”
Henry Charrabé, CEO of Seven Seas Water Group, said “We are excited to build upon the success we’ve achieved over the years and look forward to further accelerating Seven Seas’ growth trajectory alongside EQT. EQT’s long-term vision and focus on sustainability align closely with our strategy, and as an investor with deep infrastructure expertise will further support and strengthen our platform expansion through our valued water-as-a-wervice solutions.
“EQT’s financial strength and familiarity with the water and wastewater treatment business will allow us to execute on our ambitious growth plans while continuing to help deliver great value to our customers and partners.”
Alberto Donzelli, MD and co-head of Europe for MSIP, said: “Seven Seas Water exemplifies the infrastructure characteristics we prioritise – essential services, long-term inflation-protected cashflows, and operational excellence.
“The company’s water-as-a-service model has proven highly effective across diverse markets, and we are proud to have supported their evolution into a market-leading platform.”
Markus Hottenrott, CIO for MSIP, said: “Seven Seas Water is another example of MSIP’s differentiated ability to execute corporate carve-outs and business separations, successfully conduct take-private transactions, build institutional-grade platforms and work with management teams to drive operational excellence.
“We are pleased to have created a resilient infrastructure business that delivers an essential service to communities and industries across North America and beyond.”
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