ST. CROIX — The pending sale of Seven Seas Water Group, which operates two desalination plants in the territory in partnership with the Virgin Islands Water and Power Authority, is not expected to affect WAPA, according to the Authority’s top executive.
Karl Knight, WAPA executive director and CEO, said the Authority and Seven Seas Water have a solid contractual relationship so he does not anticipate any issues with Seven Seas’ new parent company.
“I don’t think the sale affects us greatly — not that I’m aware of,” Knight said. “I think our contractual relationship will continue with Seven Seas regardless of their parent company. I’m hoping that it is a financially stable parent company, as they previously enjoyed with Morgan Stanley, and that they’re able to continue to provide the level of service and support that they’ve been providing to the Water and Power Authority for the last several years.”
Seven Seas Water, which is headquartered in Tampa, Florida and Houston, owns more than 220 water and wastewater treatment plants across the United States, Caribbean, and Latin America. The company operates desalination plants at the Richmond Power Plant on St. Croix and the Randolph Harley Power Plant on St. Thomas that utilize seawater reverse osmosis technology to convert seawater into potable water that is safe to drink or use in food preparation.
Morgan Stanley Investment Management, through investment funds managed by Morgan Stanley Infrastructure Partners, its private infrastructure investment platform, announced today that it has entered into an agreement to sell its ownership stake in Seven Seas Water to the EQT Infrastructure VI fund.
“Seven Seas Water exemplifies the infrastructure characteristics we prioritize — essential services; long-term, inflation-protected cash flows; and operational excellence,” Alberto Donzelli, managing director and co-head of Europe for Morgan Stanley Infrastructure Partners, said in a statement. “The company’s Water-as-a-Service model has proven highly effective across diverse markets, and we are proud to have supported their evolution into a market-leading platform.”
EQT Infrastructure VI is a global infrastructure investment fund managed by EQT, a Swedish private equity firm. EQT Infrastructure VI targets infrastructure companies that provide essential services with stable or growing demand and predictable cash flows.
EQT, in a statement issued today announcing it has agreed to purchase Seven Seas Water, said it will support the Seven Seas management team in accelerating the deployment of water and wastewater treatment plants. The firm said it will support Seven Seas in further optimizing the platform’s operations and efficiency, while drawing on its global network and deep industry expertise to expand into new geographies.
“EQT has followed Seven Seas and the water sector closely for many years, recognizing the strong thematic tailwinds supporting the industry,” Alex Darden, partner and head of EQT’s Infrastructure Advisory Team Americas, said in a statement. “Seven Seas provides critical access to potable water in areas where a large portion of the population would otherwise not have access to clean water and wastewater infrastructure. We’re excited to join forces with the Seven Seas team to help drive more efficient water and wastewater management and fulfill their mission to expand access to clean, affordable water in the communities where it is needed the most.”
In 1997, Seven Seas was established in the Virgin Islands with a mission of providing water management services to customers in the freshwater-scarce Caribbean, according to Seven Seas. The company became one of the fastest-growing, privately-owned companies in the water industry. Its Water-as-a-Service model circumvents bureaucratic obstacles and guarantees delivery of quality water. Seven Seas was acquired in 2020 by funds managed by Morgan Stanley Infrastructure Partners.
Under MSIP’s ownership, Seven Seas has experienced substantial growth expanding its footprint in the United States, particularly Texas, scaling to become the North American Water-as-a-Service leader, according to MSIP.
Henry Charrabé, Seven Seas CEO, said the company is excited to build upon the success it has achieved over the years and looks forward to further accelerating Seven Seas’ growth trajectory alongside EQT.
“EQT’s long-term vision and focus on sustainability align closely with our strategy, and as an investor with deep infrastructure expertise, will further support and strengthen our platform expansion through our valued Water-as-a-Service solutions,” Charrabé said in a statement. “EQT’s financial strength and familiarity with the water and wastewater treatment business will allow us to execute on our ambitious growth plans while continuing to help deliver great value to our customers and partners.”
