Corix Utilities, Inc., a Richmond, British Columbia-based company developing customized water, wastewater and energy infrastructure systems, has closed its acquisition of Utilities, Inc. from U.S. private equity firm Highstar Capital. Corix was bought in 2006 by a group of Canadian investors, including Banyan Capital Partners, CAI Private Equity and British Columbia Investment Management Corp. (BCIMC). In November, 2012 CAI sold its interest in the company to BCIMC.
Corix Utilities Acquires Utilities, Inc. from Highstar Capital
NORTHBROOK, IL – December 18, 2012 – Corix Utilities (“Corix”) announced today that it has acquired 100% of the membership interests in Hydro Star, LLC (“Hydro Star”) from Highstar Capital Fund II, L.P. and certain of its affiliates and co-investors (“Highstar”). Hydro Star, through its wholly owned subsidiary, Hydro Star Holdings Corporation, is the sole shareholder of Utilities, Inc., a privately held regulated water and wastewater company headquartered in Northbrook, IL.
Utilities, Inc. is one of the largest privately owned U.S. water and wastewater companies, serving over 290,000 customers across 15 states. Utilities, Inc. has five regional offices and employs 435 professionals in its 75 subsidiaries in the states of Arizona, Florida, Georgia, Illinois, Indiana, Kentucky, Louisiana, Maryland, Nevada, New Jersey, North Carolina, Pennsylvania, South Carolina, Tennessee and Virginia.
“Corix’s vision is to be the leading North American multi-utility infrastructure provider and this acquisition continues the successful execution of our growth strategy,” said Brett Hodson, President and Chief Executive Officer of Corix. “These assets come with an exceptional management team and employee group with a proven track record of delivering safe and reliable service. These values align well with Corix’s commitment to working closely with local communities in providing sustainable utility infrastructure solutions across North America. We look forward to welcoming the Utilities, Inc. management and employees to Corix.” said Mr. Hodson.
“We believe that Utilities, Inc. is a best-in-class water utility with a strong management team and a dedicated and highly professional group of employees,” said Christopher H. Lee, Highstar’s Founder and Managing Partner. “Under our ownership, Utilities Inc. has been customer focused and committed to providing safe and reliable service. We are pleased that Corix is also a leader in the North American water sector and shares these values.”
The transaction was subject to customary approvals including state regulatory approvals, expiration of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act (“HSR”) and review by the Committee of Foreign Investment in the United States (“CFIUS”). All of the approvals have been received.
Corix was advised by Wells Fargo Securities, LLC and Skadden, Arps, Slate, Meagher & Flom, LLP and TD Securities is the arranger on a financing to support the transaction. Citi and RBC Capital Markets served as financial advisors to Highstar along with Morgan, Lewis & Bockius, LLP as legal counsel.
The Corix Group of Companies specializes in products and utility solutions for sustainable infrastructure in the water, wastewater and energy sectors and provides field metering services for clients throughout Canada and the United States. Corix has over 2,000 employees in 60 locations across North America, with corporate head offices in Vancouver, British Columbia and Wauwatosa, Wisconsin. Corix is a private company with the British Columbia Investment Management Corporation (“bcIMC”) as its principal shareholder. bcIMC is an independent investment management corporation with a globally diversified investment portfolio of $92.1 billion. Please visit www.corix.com for more information.
About Highstar Capital
Highstar Capital is an independently owned and operated private equity firm with an operationally focused, value added strategy. The firm, based in New York, was founded in 1998 and currently manages over $5 billion of investments on behalf of its managed funds and co-investment vehicles in a diversified portfolio of energy, transportation and environmental/waste management assets and businesses. For more information please visit Highstar Capital’s website at www.highstarcapital.com.
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