ABOUT US OUR CORE BUSINESSES INVESTOR INFORMATION SUSTAINABILITY MEDIA CONTACT US SEARCH Acquisition of Bristol Water You are here: Home/Investor Information/Acquisition of Bristol Water 2020/21 has been a transformative year for the Group. On 8 July 2020, we completed the sale of Viridor to KKR for net proceeds of £3.7 billion. The sale recognised the strategic value developed by Pennon over many years, realising significant value for shareholders, and creating the opportunity to refocus the Group exclusively on UK water. The Group has undertaken a highly disciplined strategic review of potential growth options to look to deploy the net proceeds. The strategic review considered a range of factors including earnings accretion, value creation from the impact on shareholder returns (both income and growth) and the impact on customers and other stakeholders. All opportunities have been benchmarked against a return of capital to shareholders. The acquisition marks an important step in that review, with the Board considering the Bristol Water Group to be highly complementary to the Group. The Board believes that the acquisition presents an attractive opportunity to expand South West Water’s wholesale capabilities, whilst also deploying best practice from both businesses to deliver value for customers, shareholders and broader stakeholders. The acquisition will increase the size and scale of the Group to serve a total of c.3.5 million customers in our region and will deliver an estimated 16% increase in RCV. It also adds another 500 dedicated employees to the Group, enabling access to a new, wider and diverse talent pool in the South West, with further opportunities to become an employer of choice. Pennon will fund the cash consideration for the acquisition from existing cash resources. The acquisition is not conditional on any acquisition financing and will not involve any deferred consideration. The acquisition is subject to review by the Competition and Markets Authority (CMA), with input from the Water Services Regulation Authority (Ofwat). Pennon considers that the acquisition will create a net benefit for customers and shareholders and expects to receive a decision from the CMA within its usual timescales. Further detail on adjustments to Pennon’s base dividend, reflecting the accretive nature of the acquisition and the new shape of the Group, are set out in Pennon’s full year results for 2020/21, published on 3 June 2021 – which will be uploaded to the website at 08:00am on 3 June in the results, reports and presentations section. Susan Davy, Group Chief Executive, commented: ‘The acquisition of Bristol Water brings great people and a great business to Pennon and I am hugely excited about building a future together. We see attractive opportunities to continue to invest in the Bristol Water business to deliver enhanced resilience and water security to benefit customers in Bristol and beyond. This latest acquisition, building on a strong heritage and history, firmly cements Pennon as one of the leading UK water and waste water companies. Results, Reports and Presentations 2020/21 Financial Statements RNS Announcements Acquisition of Bristol Water Return of capital to shareholders Green Recovery Share Price Information Financial Calendar Dividends Shareholder Services Pennon Capital Markets Events Price Review (PR19) Sustainable Financing Framework WaterShare+ Disposal of the Viridor Business OUR CORE BUSINESSES Go to South West Water website QUICK LINKS About Us Our Latest Pennon News Our Group Tax Strategy Our Board of Directors Our History Contact Us Supplier Terms and Conditions INVESTOR LINKS Annual Report 2021 Online Annual Report 2021 Share Price Financial Calendar Reports and Presentations Shareholder Services STAY IN TOUCH +44 (01392) 446677 Follow us on twitter Sign up for email alerts © Copyright 2021. Delivered by Investis Privacy Policy Cookie Policy Terms and Conditions Copyright Accessibility Site map We use cookies to personalise content and ads, to provide social media features and to analyse our traffic. We also share information about your use of our site with our social media, advertising and analytics partners.View our Cookie Policy Accept Cookies Cookie Settings