KKR and Suez Form JV for Pennsylvania Water Services

Dec. 11 (Bloomberg) — KKR & Co. and Suez Environnement

Co.’s United Water unit are forming a joint venture to manage

water and wastewater services in Middletown, Pennsylvania.

KKR and United Water are paying $43 million to the

Middletown Borough Authority and have committed an additional

$83 million for infrastructure upgrades over the life of the 50-year contract, according to a statement today. Middletown will

use the funds to eliminate existing debts and liabilities,

including pensions, and will retain ownership of the systems.

The concession arrangement begins Jan. 1 and is expected to

generate $285 million for the venture, in which KKR has a 90

percent stake and United Water owns 10 percent. The deal is

similar to one the companies executed in 2012 with Bayonne, New

Jersey.

“This partnership marks a growing trend in the U.S. for

delivering infrastructure renewal projects for essential public

services,” United Water Chief Executive Officer Bertrand Camus

said in the statement.

The venture will serve about 9,400 customers in Middletown,

a figure that may expand over the duration of the accord.

(An earlier story corrected the spelling of Suez’s company

name in first paragraph.)

To contact the reporter on this story:

Justin Doom in New York at

jdoom1@bloomberg.net

To contact the editors responsible for this story:

Reed Landberg at

landberg@bloomberg.net

Robin Saponar, Steven Frank

About BloombergNEF

BloombergNEF (BNEF), Bloomberg’s primary research service, covers clean energy, advanced transport, digital industry, innovative materials and commodities. We help corporate strategy, finance and policy professionals navigate change and generate opportunities.

Available online, on mobile and on the Terminal, BNEF is powered by Bloomberg’s global network of 19,000 employees in 176 locations, reporting 5,000 news stories a day.
 
Sign up for our free weekly newsletter →

Want to learn how we help our clients put it all together? Contact us