Pennon Group acquires Bournemouth Water

Pennon Group acquires Bournemouth Water

Parent company of South West Water, Pennon Group Plc, has purchased Bournemouth Water from Sembcorp for £100.3 million in cash. As part of the deal, £86.9 million of external debt has been assumed by Pennon.

 

The deal has been agreed and the acquisition will be referred to the Competition and Markets Authority (CMA) automatically, and is part of Pennon Group’s broader strategy to restructure operations at South West Water in time for the statutory reform of the non-household retail market in 2017.

 

Devon-based Pennon has been under pressure from water regulator Ofwat to reduce costs and improve service.

 

Pennon’s Executive Director and South West Water’s Chief Executive, Chris Loughlin, commented: “Bournemouth is a top performing water company and is an excellent business fit with South West Water’s existing operations. The combines business will provide an enhanced platform for innovation and growth ahead of market liberalisation in 2017 and will better serve both Bournemouth and the South West, delivering tangible benefits to customers and shareholders.

 

“Bournemouth Water has a proud pedigree and high service standards. Like South West Water, it operates in a varied rural and urban landscape, with an economy reliant on tourism and the natural environment. We look forward to building on its strengths and continuing to deliver high quality customer services with some of the lowest bills in the industry.”

 

Managing Director of Bournemouth Water, Bob Taylor, added: “We welcome the acquisition by the Pennon Group. South West Water has extensive knowledge of the UK water industry and was the only water and sewerage company to have been awarded ‘enhanced’ status for its business plan. We look forward to the opportunities being part of the Pennon Group will bring.”

Please rate

Comments 

Name
Email
  Ctrl + Enter

Most Read

Crossrail Elizabeth line to open on 24 May 2022

Crossrail Elizabeth line to open on 24 May 2022

The Elizabeth line will transform travel across London and the South East by dramatically improving transport links, cutting journey times, providing additional capacity, and transforming accessibility with spacious new stations and walk-through trains. The Elizabeth line will initially operate as

HS2 site acquisition paves way for Manchester high speed station

HS2 site acquisition paves way for Manchester high speed station

HS2 Ltd has reached an agreement with Bruntwood, one of the UK’s leading property providers, to purchase Square One on Travis Street in readiness for construction of Manchester’s brand new high speed railway station.   The sale marks HS2’s second major property acquisition

Alun Griffiths wins A4119 upgrade

Alun Griffiths wins A4119 upgrade

Alun Griffiths has been appointed to widen the A4119 to dual carriageway from Coed Ely to Ynysmaerdy.   The main construction phase is on course to start on site in late summer 2022.   The A4119 project is designed to improve connectivity and encourage economic activity into the

This website uses cookies to enhance your user experience. By continuing to use this site, you consent to our use of these cookies. See our Cookie Policy.