EQT announced that the EQT Infrastructure VI fund has agreed to acquire Seven Seas Water Group from Morgan Stanley Infrastructure Partners (MSIP).
Based in Tampa and Houston, Seven Seas builds, owns, and operates water and wastewater treatment plants across the U.S., Caribbean, and Latin America, with over 220 plants currently under management. For over two decades, the company has implemented its Water-as-a-Service (or WaaS) integrated model, which applies trusted capabilities in design, development, finance, risk management, and operations to greenfield and brownfield development, as well as the revitalization of existing water treatment plants.
Water access and wastewater treatment are critical services, especially in communities facing water scarcity and aging infrastructure driven by population growth, suburban expansion, and extreme weather pressures that are accelerating the shift toward decentralized utility systems.
The decentralized wastewater treatment in the U.S. will require tens of billions of dollars to meet water quality goals over the years. And as a well-established owner and operator of decentralized water and wastewater treatment plants, Seven Seas is purpose-built to meet this evolving need and support the communities most affected by these challenges. The company provides flexible, scalable solutions where legacy water and wastewater infrastructure falls short, covering all aspects of the water cycle through customized desalination, advanced water purification, wastewater treatment, and reuse and recycle services.
EQT will be supporting the Seven Seas management team in advancing the deployment of water and wastewater treatment plants. It will utilize its in-house digital expertise to support the company in further optimizing the platform’s operations and efficiency, while leveraging its global network and deep industry expertise to expand into new geographies.
The deal is subject to customary conditions and approvals.
With this deal, EQT Infrastructure VI is expected to be 50% to 55% invested (including closed and/or signed investments, announced public offers, if applicable, and less any expected syndication).
Advisors: EQT was advised by Royal Bank of Canada (financial) and A&O Shearman (legal).
KEY QUOTES:
“EQT has followed Seven Seas and the water sector closely for many years, recognizing the strong thematic tailwinds supporting the industry. Seven Seas provides critical access to potable water in areas where a large portion of the population would otherwise not have access to clean water and wastewater infrastructure. We’re excited to join forces with the Seven Seas team to help drive more efficient water and wastewater management and fulfill their mission to expand access to clean, affordable water in the communities where it is needed the most.”
Alex Darden, Partner and Head of EQT’s Infrastructure Advisory Team Americas
“We are excited to build upon the success we’ve achieved over the years and look forward to further accelerating Seven Seas’ growth trajectory alongside EQT. EQT’s long-term vision and focus on sustainability align closely with our strategy, and as an investor with deep infrastructure expertise, will further support and strengthen our platform expansion through our valued Water-as-a-Service® solutions. EQT’s financial strength and familiarity with the water and wastewater treatment business will allow us to execute on our ambitious growth plans while continuing to help deliver great value to our customers and partners.”
Henry Charrabé, CEO of Seven Seas Water Group
