Apax Global invests in American Water unit in $1.28bn deal

Apax Global Alpha Ltd said Monday the Apax X Fund has signed a definitive agreement to acquire New Jersey-headquartered public utility American Water Work Co’s Homeowner Services Group.

Apax is a limited partner in the X Fund, and will invest EUR18 million in Homeowner Services Group as part of the deal. Apax Global Alpha allows investors access to a portfolio of private equity funds advised by Apax.

The deal is expected to close in the fourth quarter. The total deal is valued at $1.28 billion, with American Water set to receive $480 million in cash and a $720 million secured seller’s note bearing a 7% annual interest rate with a five-year term.

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“Homeowner Services Group’s customer-facing brands include American Water Resources and Pivotal Home Solutions, which provide various warranty protection programs and other home services to residential customers across the US,” Apax said.

In the summer of 2019, Apax Global made a commitment of $450 million to the X Fund.

Shares in Apax Global Alpha were 0.9% higher in London on Monday morning at 215.50 pence each.

Source: Morningstar

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