The combination of Corix Infrastructure Inc. (CII) and SouthWest Water Company (SWWC) was awarded Utilities Acquisition of the Year in North America, with judges impressed by the impact it had on the market.

One judge said: “Water deals have been hard to pull off.”

Indeed, the deal was originally agreed in 2022 but only completed on 1 April 2024.

The transaction saw the combination of SouthWest Water and Corix’s water and wastewater businesses in a combination of equals, that created “a leading regulated water and wastewater utility”.

The combination established a leading water and wastewater utilities business with approximately 1,300 employees to provide quality water and wastewater services to around 1.3 million customers across 20 U.S. states and 2 Canadian provinces, building a larger platform to facilitate needed investments in the communities served by the CII and SWWC operating companies, while continuing to add scale and grow in the future. The combined business represents one of the largest investor-owned water and wastewater utilities in North America, as well as one of the most geographically diverse regulated businesses in North America.

The submission said: “Water and wastewater utilities are intensive capital businesses and require significant investment to continue providing communities essential safe and reliable service. As one company, SWWC’s and CII’s water and wastewater utilities have deeper resources and capabilities to invest and operate in the water and wastewater sector for the long term. The investments that the combined company can make, together with the leveraging of prudent practices and operating experience of both companies, will support the safe, reliable and sustainable delivery of critical resources and services and will enhance the customer experience.”

Advisers on the deal:

• CIBC – financial to SWWC
• Royal Bank of Canada – financial to CII
• Milbank – legal to SWWC
• Skadden – legal to CII
• Leo Berwick – tax to CII