Algonquin Power & Utilities to part-fund Park Water acquisition with Emera’s investment

Canada-based energy services company Emera has agreed to invest $33m in Algonquin Power & Utilities (APUC) to fund the company’s purchase of Park Water Company.

The subscription receipts for Emera will be convertible to 3,316,583 APUC common shares, the company said.

APUC will be using proceeds from the subscription to partially fund its acquisition of Park Water, which was announced in September this year.

Park Water owns and operates three water utilities that are engaged in the production, treatment, storage, distribution and sale of water in southern California and western Montana.

Together, the utilities have 74,000 customer connections and operate 1,000 miles of distribution mains.

APUS announced the acquisition of Park Water for $327m, which includes long-term utility debt of around $77m.

APUC CEO Ian Robertson said: "We are pleased that we are able to continue the expansion of our utility distribution business with the acquisition of Park Water.

"The $33m subscription receipts issued to Emera allows us to efficiently issue additional equity, which together with our public equity offering of $100m will crystalise the accretive value from this acquisition."