Pennon Group, the owner of South West Water, Bristol Water and Bournemouth Water, has confirmed the acquisition of Sutton and East Surrey Water (SES Water) for £380m.

SES Water, a drinking water only supplier in the South East of England, was put up for sale last year by its owner, Sumisho Osaka Gas Water UK Limited.

SES Water employs 476 staff and is headquartered in Redhill, Surrey. The group supplies 160 million litres of clean water every day to around 745,000 customers across East Surrey, West Sussex, West Kent and South London.

Pennon’s acquisition follows its successful purchase and integration of Bournemouth Water in 2015 and Bristol Water in 2021, alongside the integration of water supply and wastewater in the Isles of Scilly in 2018.

Group chief executive of Pennon, Susan Davy, said: “We are able to invest in SES Water’s resources infrastructure, environment and people thanks to our strong financial performance and long-term UK shareholder base, delivering a seamless transition for SES Water’s customers while also providing an even more robust and reliable service to customers.”

Following regulatory confirmation, Pennon intends to provide an equity injection to enhance SES Water’s financial resilience, bringing its gearing from 88% to within Pennon’s well-established water business gearing range of 55% to 65%. The group suggested this can give its customers “assurance” that SES Water can invest sustainably over the long-term in infrastructure and services.

Pennon is one of the few operators in the UK water sector with a stock exchange listing, providing a balance sheet and level of financial transparency that provides a strong platform for sustainable investment and growth.

Davy added: “Having submitted our biggest investment plan of £2.8bn from 2025-30 to date, a plan which will create 2,000 new jobs and improve long-term water resilience, the acquisition of SES Water comes at a time of great promise for our business, and I am looking forward to this next exciting chapter in our development.”

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