Highstar Capital Exits Utilities

Highstar Capital Exits Utilities

Corix Utilities has completed the acquisition of Hydro Star from Highstar Capital and certain co-investors.   Hydro Star is the sole shareholder of Utilities, Inc., a water and wastewater company.

Utilities, Inc. provides water and wastewater services to approximately 300,000 customers in 15 US states.  Markets served include homes, businesses, new developments and commercial enterprises.  Utilities 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. The company is headquartered in Northbrook, IL (www.uiwater.com).

The Corix Group is a wastewater and energy infrastructure services provider for small to mid-sized communities across North America.  The company has over 2,000 employees in 60 locations across North America, with corporate head offices in Vancouver, BC and Wauwatosa, WI.  Corix is a portfolio company of BC Investment Management Corporation and CAI Capital Management.  (www.corix.com).

Citi and RBC Capital Markets served as financial advisors to Highstar along with Morgan, Lewis & Bockius as legal counsel.  Corix was advised by Wells Fargo Securities and Skadden, Arps, Slate, Meagher & Flom, and TD Securities is the arranger on a financing to support the transaction.

Highstar Capital invests in energy, transportation and environmental/waste management assets and businesses. The firm has more than $5 billion of capital under management.  Highstar Capital was founded in 1998 and is based in New York (www.highstarcapital.com).

“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 Lee, Highstar’s Founder and Managing Partner. “Under our ownership, Utilities 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.”

© 2012 PEPD • Private Equity’s Leading News Magazine • 12-20-12

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