Private equity firm EQT completes deal to take stake in Yorkshire Water owner

The Swedish firm has taken a 42% stake in Kelda Holdings, joining two other overseas firms

One of the world’s largest private equity firms has completed its acquisition of a 42% stake in Yorkshire Water.

Swedish firm EQT has acquired the share in Kelda Holdings, the parent company of Yorkshire Water, joining two other overseas firms in owning the company. A new chair is to be appointed at the company, but has not been named in this morning’s announcement.

EQT was last year ranked as the second largest private equity firm worldwide based on funds raised and has a wide range of assets around the world in a number of different sectors. Its deal for a major stake in Yorkshire Water was first announced in March and has now completed.

Nicola Shaw, chief executive of Yorkshire Water said: “We are pleased to have EQT on board as we deliver our largest environmental investment programme. They are committed to our turnaround plans and our ambition to deliver improved performance for customers and the environment.

“Together with our other shareholders, we are working to strengthen the business, investing for the future and delivering the improvements our customers expect. We look forward to working together to build on this momentum and continue delivering against our plans.”

Kunal Koya, a partner at EQT, will join Yorkshire Water’s board. He said: “EQT is delighted to invest at a pivotal moment for Yorkshire Water and the wider sector.

“We bring long-term capital and deep infrastructure experience, and together with GIC and TCorp are committed to strengthening the company’s financial resilience and supporting the delivery of its investment program which will enable better service for customers and improved environmental performance.”

The deal comes as water companies around the UK remain under intense scrutiny over both their environmental records and overseas ownership. Earlier this week the Government objected to a rescue plan for Thames Water, raising the prospect of that firm coming under public ownership.