Levine Leichtman Capital Partners Acquires USA Water

In a move indicative of growing interest in the water utility sector, Los Angeles-based private equity firm Levine Leichtman Capital Partners (LLCP) announced the acquisition of USA Water, a Texas-based provider of operations and maintenance services for water and wastewater systems. The terms of the transaction, finalized on February 22, 2024, were not disclosed.

Headquartered in Rosenberg, Texas, USA, Water boasts a proven track record of serving communities across the Southeastern United States. The company’s expertise lies in managing and maintaining critical water infrastructure, ensuring the delivery of clean and reliable water supplies to thousands of residents. This acquisition marks LLCP’s latest foray into the water utility sector, a strategic move aligned with the firm’s focus on investing in essential infrastructure assets.

The acquisition is expected to benefit both parties involved. LLCP’s financial resources and operational expertise are poised to bolster USA Water’s growth trajectory, facilitating its expansion into new markets and enhancing its service capabilities. Conversely, USA Water’s established presence and operational know-how provide LLCP with a strong platform for further investment and diversification within the water utility space.

Furthermore, the transaction underscores the growing appeal of the water utility sector to private investors. The essential nature of water services and the potential for stable and predictable returns make water utilities attractive assets in an increasingly volatile market environment. This trend is expected to continue in the coming years, with more private equity firms like LLCP seeking opportunities to invest in water infrastructure projects and utilities.

While the long-term implications of this acquisition remain, it represents a significant development in the water utility sector. LLCP’s acquisition of USA Water highlights the increasing role of private equity in infrastructure development. It underscores the growing importance of securing investments in water infrastructure to ensure the continued delivery of clean and reliable water services to communities nationwide.