Macquarie Asset Management has agreed to acquire a majority stake in Southern Water Services, which serves 2.6 million water and 4.7 million wastewater customers in the United Kingdom.
Under the agreement, Macquarie will invest more than £1 billion ($1.4 billion) in new equity on behalf of long-term investors such as pension funds and insurance companies, to recapitalize the business and implement a more sustainable financing strategy for Southern Water.
Macquarie said the capital injection will enable Southern Water to significantly upgrade its network, with £2 billion ($2.7 billion) to be invested over the next four years to fix underperforming pipes, pumping stations and sewers.
“Southern Water needs significant investment to improve its operational and environmental performance, and financial health,” said Leigh Harrison, head of Macquarie Infrastructure and Real Assets. “Without it, the business will be unable to fulfil the expectations of the milli
