On Monday, Eversource Energy (NYSE:ES) inked a deal to sell Aquarion Water Company to the newly created Aquarion Water Authority for $2.4 billion, including $1.6 billion in cash and $800 million in net debt.

The sale, valued at 1.7x the December 2024 rate base, will help Eversource reduce parent company debt and reinvest in its core electric and natural gas businesses.

The company expects to record a $300 million loss on the sale in the fourth quarter of 2024, including $140 million in estimated taxes, but it reaffirmed its 5%- 7% EPS growth target through 2028.

The sale is subject to regulatory approvals from utility commissions in Connecticut, Massachusetts, and New Hampshire and other customary conditions. The transaction is expected to close in late 2025.

Eversource Chairman, President and CEO Joe Nolan said, “Since our acquisition of Aquarion in 2017, we have built on Aquarion’s longstanding track record of superior customer service, industry-leading reliability and operational success to help them become the largest investor-owned water utility in New England and seventh largest in the country.”

“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.”

Eversource expects to release fourth-quarter results on February 12, 2025.

Investors can gain exposure to the stock via BNY Mellon ETF Trust BNY Mellon Global Infrastructure Income ETF (BATS:BKGI) and DBX ETF Trust Xtrackers S&P ESG Dividend Aristocrats ETF (BATS:SNPD).

Price Action: ES shares are up 0.53% at $58.54 premarket at the last check Tuesday.

Read Next:

• Eversource Acquires Mystic Property from Constellation to Support Clean Energy Transition

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This article Eversource Strengthens Focus on Electric, Gas Business with $2.4 Billion Aquarion Sale originally appeared on Benzinga.com

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