Severn Trent's North American business operates and manages water and wastewater systems, and provides management services to municipalities and local communities. It operates in all aspects of the water and wastewater process including treatment, networks and customer service.
Liv Garfield, Severn Trent Chief Executive, said:
“The North American division is a strong business that will be better able to grow and flourish under a new USA-based owner. Its sale enables the Severn Trent Group to focus on its core strategic activities.”
Severn Trent will provide a restatement of prior-year results taking account of the divestment in its Q1 trading update on 19 July 2017. The business will be reported as a discontinued operation in Severn Trent Plc's half-year 2017/18 results announcement on 23 November 2017.
The sale values the business at $62 million (£48 million1). Proceeds will be used for general corporate purposes.
EY Corporate Finance acted as sole financial adviser to Severn Trent, in respect of this divestment.