Unitil Completes Strategic Water Utility Acquisition, Secures $50M Loan

summarizeSummary

Unitil Corporation completed the $55.8 million acquisition of two New Hampshire water companies, funded by a new $50 million term loan, which is expected to be earnings accretive.

check_boxKey Events · M&A and Partnerships · UTL

• Acquisition Completed

  Unitil Corporation completed the acquisition of Aquarion Water Company of New Hampshire, Inc. and Abenaki Water Co., Inc. for a total consideration of $55.8 million, including $42.1 million in cash and $13.7 million in assumed debt.

• Revised Acquisition Scope

  The acquisition was finalized for two water companies in New Hampshire, excluding Aquarion Water Company of Massachusetts, Inc. from the original purchase agreement.

• New Debt Financing Secured

  Unitil entered into an Amended and Restated Credit Agreement, securing a new $50 million Tranche B term loan from Scotiabank, from which $42.7 million was drawn to finance the acquisition.

• Expected Earnings Accretion

  The acquisition is expected to be earnings accretive over the long-term, supporting Unitil's long-term earnings per share growth of 5% to 7%.

auto_awesomeAnalysis · UTL · Energy & Transportation

Unitil Corporation has completed a significant strategic acquisition of two New Hampshire water companies for $55.8 million. This transaction expands Unitil's regulated utility services and is projected to be earnings accretive, supporting the company's long-term EPS growth target of 5% to 7%. The acquisition was funded by a new $50 million term loan, demonstrating the company's ability to secure capital for growth initiatives. While the scope was reduced from the initial plan by excluding a Massachusetts entity, the completed acquisition still represents a material expansion into a complementary business line.