Swedish private equtiy giant EQT said on Monday it agreed to acquire a 42% shareholding in Kelda Holdings Limited, the parent company of Yorkshire Water.
Yorkshire Water said EQT is committed to investing further equity to strengthen the company’s balance sheet, including contributing to the approximate £600 million intercompany loan repayment that is due before March 2027.
It said EQT is also fully supportive of the plan to deliver Yorkshire Water ’s largest ever environmental investment program, with a total of £8.3 billion dedicated to improving services and upgrading infrastructure throughout the region between 2025 and 2030.
“This investment program will continue to drive a step change in environmental protection, infrastructure resilience and service quality across the region, further supported by the hiring of over 1,000 new employees locally,” said Yorkshire Water.
“Following the completion of the transaction and a simplification of the capital structure, existing shareholders GIC, a leading global investor, and TCorp, the investment and financial management partner of the New South Wales (NSW) public sector in Australia will hold 42% and 16% of the company respectively.
“The change of ownership is expected to be completed by the end of June 2026. “The acquisition is conditional upon approvals, including anti-trust.”
EQT said: “Yorkshire Water provides essential water and wastewater services to approximately 5.5 million individual customers, serving over two million homes and 140,000 businesses.
“It operates nearly 700 treatment works, 120 reservoirs, and over 83,000 km of mains across the Yorkshire region.
“This transaction takes place as the UK water sector enters a new phase of investment, following the latest regulatory price review.
“Yorkshire Water is investing significant capital to deliver sustained improvement whilst increasing accountability. EQT, alongside existing investors, will look to play a leadership role in driving progress.
“Following completion of the transaction, EQT will work in partnership with its co-shareholders and the company’s management team to deliver sustainable operational improvements for the benefit of customers and the environment.
“EQT is committed to investing further equity to strengthen the company’s balance sheet which will improve future financial resilience and support continued investment.
“EQT is also fully supportive of the plan to deliver the company’s largest ever environmental investment program, with a total of £8.3 billion dedicated to improving services and upgrading infrastructure throughout the region between 2025 and 2030.
“This investment program will continue to drive a step change in environmental protection, infrastructure resilience and service quality for customers across the region, further supported by the hiring of over 1,000 new employees locally.”
Kunal Koya, partner at EQT Infrastructure said: “Our strong track record as a long-term active owner of large infrastructure assets makes EQT a natural partner for Yorkshire Water.
“We believe that as a responsible private capital manager, EQT can play an important role in modernizing the UK’s water infrastructure, and the company’s multi-year investment plan reflects that objective.
“Together with Yorkshire Water’s existing investors, we will support the sector’s reform agenda and deliver service improvements for customers across the region and transparency for all stakeholders.”
Vanda Murray, Chair, Yorkshire Water & Kelda Holdings said: “We are delighted that EQT has decided to invest in Yorkshire Water. That decision is a strong endorsement of the strategy we are executing, the business plan we have in place, and the quality and experience of our management team.
“We are making encouraging progress on ‘Doing Right by Yorkshire’ as we continue to strengthen service, resilience and outcomes for customers and the environment, and EQT’s long-term, responsible approach to ownership is well aligned with our priorities. We look forward to working together as we build on that momentum and continue to deliver against our plans.”
Nicola Shaw, CEO of Yorkshire Water and Kelda Holdings Limited, said: “This is a great step forward for Yorkshire Water. The EQT team will bring additional expertise to our Board, and their backing is a strong vote of confidence in our plan to improve performance and the progress we have made so far.
“EQT has a long-term perspective and their team is committed to supporting the delivery of our £8.3bn investment programme. Their support, together with GIC and TCorp, will enable us to continue to execute our strategy, maintain focus on operational performance, and deliver the investment needed to improve outcomes for customers and the environment across Yorkshire.”