Investment Banking - Pennichuck Corporation

Transactions | Infrastructure/Environmental/Water

Client: Pennichuck Corporation
Industry: Infrastructure/Environmental/Water
Transaction Type: Mergers & Acquisitions
Role: Sell-Side Advisor

  • Founded in 1852, Pennichuck Corporation (Nasdaq: PNNW) (“Pennichuck”), was a publicly traded water utility holding company based in Merrimack, NH.
  • As the largest investor owned utility in New Hampshire, Pennichuck had $156 million in installed infrastructure and served 120,000 people in 28 communities.
  • The negotiated sale agreement marked the end to an eight year legal battle in which the City of Nashua had attempted to seize control of its water supply by eminent domain.
  • Transaction includes multiple businesses, including Pennichuck Water Works, two other regulated utilities in NH, a real-estate holding company and a non-regulated water services company.
  • The City of Nashua agreed to acquire all the outstanding shares of Pennichuck for a price of $29.00 per share, or approximately $138 million in cash. The City also assumed $60 million of the company’s outstanding debt, resulting in a total transaction value of nearly $200 million.
  • The transaction was structured as a stock sale, allowing Pennichuck shareholders to benefit from more favorable tax treatment than would have been possible under an eminent domain taking.
  • Boenning & Scattergood acted as Pennichuck‘s exclusive financial advisor on the transaction and rendered a fairness opinion.