By Sabela Ojea

Eversource Energy is selling Aquarion Water to a local water authority in Connecticut in a deal with an enterprise value of $2.4 billion.

The company said Monday its agreement with the Aquarion Water Authority includes about $1.6 billion in cash and $800 million of net debt that will be extinguished at closing.

Eversource plans to book a loss associated with the sale of $300 million in its fourth-quarter results, and left its earnings per share growth target of 5% to 7% through 2028 unchanged.

Proceeds from the sale will allow it to pay down parent company debt while efficiently reinvesting capital into its core electric and natural gas businesses, Eversource said.

"This transaction reinforces our commitment to our core electric and natural gas operations as the largest regulated utility in New England, allowing us to optimize our portfolio and strengthening our balance sheet while reinvesting capital to benefit our customers," Chief Executive Joe Nolan said.

Eversource bought Aquarion Water in 2017 in a deal with an enterprise value of about $1.67 billion, comprised of $800 million in cash and $795 million of assumed debt.

Write to Sabela Ojea at sabela.ojea@wsj.com; @sabelaojeaguix

(END) Dow Jones Newswires

January 27, 2025 18:52 ET (23:52 GMT)

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