Last checked at 3 Jul 2017 07:00
3 July 2017
Severn Trent Plc - sale of North American business
Severn Trent is pleased to announce the sale of its North American business (Operating Services, US) to US investors PPC Enterprises LLC and Alston Capital Partners LLC.
Severn Trent's North American business operates and manages water and wastewater systems, and provides management services to municipalities and local communities. It operates in all aspects of the water and wastewater process including treatment, networks and customer service.
Liv Garfield, Severn Trent Chief Executive, said:
"The North American division is a strong business that will be better able to grow and flourish under a new USA-based owner. Its sale enables the Severn Trent Group to focus on its core strategic activities."
Severn Trent will provide a restatement of prior-year results taking account of the divestment in its Q1 trading update on 19 July 2017. The business will be reported as a discontinued operation in Severn Trent Plc's half-year 2017/18 results announcement on 23 November 2017.
The sale values the business at $62 million (£48 million1). Proceeds will be used for general corporate purposes.
EY Corporate Finance acted as sole financial adviser to Severn Trent, in respect of this divestment.
1. Assumed exchange rate USD:GBP 0.780 at completion
Enquiries
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Investors & Analysts
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Ruban Chandran | Severn Trent Plc | +44 (0) 7957 166615 |
Head of Investor Relations | ||
Richard Tunnicliffe | Severn Trent Plc | +44 (0) 7834 419722 |
Investor Relations Manager | ||
Media
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Severn Trent Press Office | Severn Trent Plc | +44 (0) 2477 715640 |
Jonathan Sibun | Tulchan | +44 (0) 207 353 4200 |
Cautionary statement regarding forward-looking statements
This document contains statements that are, or may be deemed to be, 'forward-looking statements' with respect to Severn Trent's financial condition, results of operations and business and certain of Severn Trent's plans and objectives with respect to these items.
Forward-looking statements are sometimes, but not always, identified by their use of a date in the future or such words as 'anticipates', 'aims', 'due', 'could', 'may', 'will', 'would', 'should', 'expects', 'believes', 'intends', 'plans', 'projects', 'potential', 'reasonably possible', 'targets', 'goal' or 'estimates' and, in each case, their negative or other variations or comparable terminology. Any forward-looking statements in this document are based on Severn Trent's current expectations and, by their very nature, forward-looking statements are inherently unpredictable, speculative and involve risk and uncertainty because they relate to events and depend on circumstances that may or may not occur in the future.
Forward-looking statements are not guarantees of future performance and no assurances can be given that the forward-looking statements in this document will be realised. There are a number of factors, many of which are beyond Severn Trent's control that could cause actual results, performance and developments to differ materially from those expressed or implied by these forward-looking statements. These factors include, but are not limited to: the Principal Risks disclosed in our latest Annual Report (which have not been updated since); changes in the economies and markets in which the group operates; changes in the regulatory and competition frameworks in which the group operates; the impact of legal or other proceedings against or which affect the group; and changes in interest and exchange rates.
All written or verbal forward-looking statements, made in this document or made subsequently, which are attributable to Severn Trent or any other member of the group or persons acting on their behalf are expressly qualified in their entirety by the factors referred to above. Subject to compliance with applicable laws and regulations, Severn Trent does not intend to update these forward-looking statements and does not undertake any obligation to do so,
Nothing in this document should be regarded as a profits forecast.
This document is not an offer to sell, exchange or transfer any securities of Severn Trent Plc or any of its subsidiaries and is not soliciting an offer to purchase, exchange or transfer such securities in any jurisdiction. Securities may not be offered, sold or transferred in the United States absent registration or an applicable exemption from the registration requirements of the US Securities Act of 1933 (as amended).