Severn Trent offloads North American business

Severn Trent has sold its North American business for $62m (£48m) as it looks to focus on its core UK activities.

The buyers of the US operating services arm, which manages water and wastewater systems, and provides management services to municipalities and local communities, are US investment groups PPC Enterprises and Alston Capital Partners.

"The North American division is a strong business that will be better able to grow and flourish under a new USA-based owner. Its sale enables the Severn Trent Group to focus on its core strategic activities," said chief executive Liv Garfield.

The company said it will use the proceeds for general corporate purposes.

Severn Trent will also provide a restatement of prior-year results taking account of the divestment in its first-quarter trading update on 19 July, with the US business reported as a discontinued operation in Severn Trent Plc's half-year results in November.

The sale values the business at $62 million (£48 million1). Proceeds will be used for