Eversource Strengthens Focus on Electric, Gas Business with $2.4 Billion Aquarion Sale

Eversource Energy, a leading utility company in the Northeast, has announced a strategic move to sell its Aquarion Water Company subsidiary for approximately $2.4 billion. This transaction, expected to close in late 2025, is subject to regulatory approvals and customary closing conditions. The sale is part of Eversource's plan to optimize its portfolio and strengthen its balance sheet while reinvesting capital into its core electric and natural gas businesses, ultimately benefiting customers through additional investments in reliability.

The Aquarion Water Company, headquartered in Bridgeport, Connecticut, serves nearly 250,000 water and wastewater customers in 72 cities and towns across Connecticut, Massachusetts, and New Hampshire. With more than 360 employees, Aquarion has a rich history dating back to 1857 and has grown significantly under Eversource's ownership, adding approximately 30,000 customers through six acquisitions since 2017.

Eversource's decision to sell Aquarion is driven by a desire to focus on its core regulated utility operations and optimize its portfolio. The proceeds from the sale will enable Eversource to pay down parent company debt, strengthening its financial position. The company expects to record a loss on the planned sale of Aquarion of approximately $300 million in its results for the fourth quarter of 2024, including an estimated income tax expense of $140 million. However, Eversource reaffirms its long-term EPS growth target of between 5% and 7% through 2028, indicating that the sale is a strategic move to improve its financial position and focus on its core businesses.

The Aquarion sale is subject to regulatory approval by the Connecticut Public Utilities Regulatory Authority, the Massachusetts Department of Public Utilities, and the New Hampshire Public Utilities Commission, as well as other approvals pursuant to the Hart-Scott-Rodino Antitrust Improvements Act and other customary closing conditions. These regulatory hurdles could impact the timeline and final terms of the deal, but Eversource remains committed to successfully completing the transaction.

In addition to the Aquarion sale, Eversource is pursuing other strategic initiatives to achieve its long-term EPS growth target. These initiatives include investing in transmission and distribution infrastructure, exiting the offshore wind business, and modernizing and developing infrastructure. By focusing on these core utility operations and optimizing its portfolio, Eversource aims to provide safe, reliable, and cost-effective services to its customers while maintaining a strong financial position.




In conclusion, Eversource's decision to sell Aquarion Water Company for $2.4 billion is a strategic move to strengthen its focus on the electric and gas businesses. This transaction, along with other strategic initiatives, positions Eversource to achieve its long-term EPS growth target and provide enhanced services to its customers. As the regulatory approval process unfolds, investors will closely monitor the progress of this transaction and its impact on Eversource's financial position and growth prospects.