KKR, a global investment firm, and Arjun Infrastructure Partners (AIP), an independent infrastructure investment advisory company, have announced an agreement by which the 75 percent equity stake currently owned and controlled by KKR’s infrastructure funds and other accounts in South Staffordshire will be sold to pension funds and other institutional investors advised by AIP. The transaction is subject to customary regulatory approvals and clearances. No financial terms are being disclosed
South Staffordshire is comprised of a regulated water company, South Staffordshire Water (SSW), the statutory supplier of water to approximately 1.6 million customers in the South Staffordshire and Cambridge regions in the United Kingdom, and a significant non-regulated business that provides contractual specialist services primarily to the U.K. water sector. The non-regulated business, which includes SSI Services and Echo Managed Services, operates across the United Kingdom and continues to leverage its valuable relationships with companies across various regulated sectors.
Last year South Staffordshire provided support to more than 23,000 customers in debt, helping them to manage their water accounts and introducing the “Assure” social tariff to offer a discount on bills based on income and expenditure. The company has invested significantly in the areas that it serves, supporting the successful introduction of the £1 billion North West Cambridge development by supplying homes and community facilities with the U.K.’s largest rainwater recycling scheme.
Arjun Infrastructure Partners facilitates the direct infrastructure investment strategy of large sophisticated investors working in partnership whilst allowing each investor to retain all the benefits of a direct investment approach. Founded in 2015, AIP has now made seven investments on behalf of its investors in the United Kingdom and the Middle East.
