EVERSOURCE ANNOUNCES SALE OF AQUARION WATER COMPANY
Eversource Energy (NYSE:ES) announced that it has entered into a definitive agreement to sell Aquarion Water Company to the Aquarion Water Authority (AWA), a quasi-public corporation and political subdivision of the State of Connecticut and a standalone, newly created water authority alongside the South Central Connecticut Regional Water Authority (RWA).
Subject to certain closing adjustments, the aggregate enterprise value of the sale is approximately $2.4 billion, which includes approximately $1.6 billion in cash and $800 million of net debt that will be extinguished at closing. The proceeds from the sale will enable Eversource to pay down parent company debt while reinvesting capital into its core electric and natural gas businesses, enabling additional investments in reliability for customers and strengthening Eversource’s financial position.
As a result of this transaction, Eversource expects to record a loss on the planned sale of Aquarion of approximately $300 million in its results for Q4 2024. This loss on sale includes approximately $140 million of estimated income tax expense. Eversource reaffirms its long-term EPS growth target of between 5% and 7% through 2028.
The transaction is subject to regulatory approval by the Connecticut Public Utilities Regulatory Authority, the Massachusetts Department of Public Utilities, and the New Hampshire Public Utilities Commission, as well as other approvals pursuant to the Hart-Scott-Rodino Antitrust Improvements Act as well as other customary closing conditions. The transaction is expected to close in late 2025.
STANDEX ACQUIRES MCSTARLITE
Standex International Corporation (NYSE:SXI) announced that it has acquired privately held, California-based McStarlite Co., a provider of complex sheet metal aerospace components, for approximately $56.5 million in cash, financed from Standex’s existing revolver.
John Basso, president, chairman and CEO of McStarlite Co., said, “Standex’s ownership offers us the opportunity to leverage a much broader geographical and industry presence, additional engineering expertise, complementary product offerings and enhanced customer relationships.”
With four facilities in Harbor City, Calif., McStarlite designs and manufactures cold deep draw and bulge-formed aviation components, including segmented and single-piece lipskins, nozzles, complex sheet metal assemblies and tooling to support production hardware.
McStarlite Co. will be reported as part of Standex’s Engineering Technologies Group business segment. In calendar year 2024, McStarlite revenue was approximately $33 million with an adjusted EBITDA margin above 20%.
McStarlite was advised by investment banking firm Janes Capital Partners and Procopio, Cory, Hargreaves & Savitch LLP as legal counsel.
CONNECTION REPORTS Q4 AND FULL-YEAR 2024 RESULTS
Connection (NASDAQ: CNXN), an IT solutions provider to business, government, health care and education markets, announced that its board of directors declared a quarterly dividend of $0.15 per share of the Company’s common stock. Payment will be made on March 14, 2025, to shareholders of record on February 25, 2025.
Net sales for the quarter ended December 31, 2024, increased by 1.8%, year over year. Gross profit was flat while gross margin decreased 30 basis points to 18.3%, compared to the prior year quarter. Net income for the quarter ended December 31, 2024, decreased by 12.9% to $20.7 million, or $0.78 per diluted share, compared to net income of $23.8 million, or $0.90 per diluted share, for the prior year quarter.
Net sales for the year ended December 31, 2024, decreased by 1.7%, compared to the year ended December 31, 2023. Gross profit increased by 1.6%, while gross margin expanded 60 basis points to 18.6%, compared to the year ended December 31, 2023.
Net income for the year ended December 31, 2024, increased by 4.6% to $87.1 million, or $3.29 per diluted share, compared to net income of $83.3 million, or $3.15 per diluted share, for the year ended December 31, 2023.
Adjusted Diluted Earnings per Share increased to $3.25 per share for the year ended December 31, 2024, compared to $3.23 per share for the year ended December 31, 2023.
President and CEO Timothy McGrath said the company’s record gross margins were driven by sales of advanced technologies, including cloud, software and security solutions, and by investing in AI and modern infrastructure.
