Simpson Thacher is representing J.P. Morgan Securities LLC as financial advisor to SJW Group (NYSE: SJW) in a merger of equals transaction with Connecticut Water Service, Inc. (NASDAQ: CTWS) to create the third-largest investor-owned water and wastewater utility in the United States, based on pro forma enterprise value and combined rate base.
Under the terms of the agreement, Connecticut Water shareholders will receive 1.1375 shares of SJW Group for each share of Connecticut Water, the equivalent of $61.86 per Connecticut Water share, or approximately $750 million in the aggregate, based on the closing price of SJW Group on March 14, 2018. The transaction, which is expected to close by year-end 2018, is subject to regulatory approvals and customary closing conditions.
SJW Group, headquartered in San Jose, California, provides water service to more than one million people in San Jose, California and nearby communities and in Canyon Lake, Texas and nearby communities. Connecticut Water, headquartered in Clinton, Connecticut, provides water service to more than 450,000 people in Connecticut and Maine and wastewater service to more than 10,000 people in Connecticut.
The Simpson Thacher team includes Caroline Gottschalk and Della Fok (M&A).