A&O aids Capstone on Bristol Water buy

Allen & Overy (A&O) has helped Canada-listed company Capstone Infrastructure Corporation acquire a majority stake in Bristol Water.

Capstone bought a 70 per cent interest in Bristol Water from a subsidiary of Suez Environment called Agbar (Sociedad General de Aguas de Barcelona) for around C$215m (£133.5m).

The deal is Capstone’s first in the UK and was funded through a combination of existing credit facilities, cash and a new C$150m senior debt facility.

The sale values Bristol Water at around £400m and was closed on 5 ­October. Agbar, which is headquartered in Spain, will retain a 30 per cent stake in the company.

A&O advised Capstone. It was the firm’s first time acting for the company, ­following a recommendation from Macquarie Bank. Infrastructure partners Susan Howard and Conrad Anderson led on the deal for A&O.

Blake Cassels & Graydon advised Capstone on the Canadian financing aspects of the deal, with associate Nick Tropak leading.

Freshfields Bruckhaus Deringer advised Agbar. Corporate partner Piers Prichard Jones lead the team in London and corporate senior associate James Pointon took responsibility in Spain. Earlier this year Freshfields advised on Hong Kong consortium UK Water’s £2.4bn acquisition of Northumbrian Water (The Lawyer, 2 August).

In Canada, Torys advised the Macquarie Capital ­Markets subsidiary that ­provided Capstone with its C$150m senior debt facility, with corporate partner Philip Symmonds leading on the deal.