Over more than 130 years, Aqua America (NYSE: WTR) has grown to become a leader in the water and wastewater utility industry, serving more than three million people across eight states. With the acquisition of the Pittsburgh-based natural gas distribution company, Peoples, Aqua is building on its expertise in infrastructure investment, regulatory compliance and operational excellence with a new platform for growth. With complementary service territories focused primarily in Pennsylvania and a long history of service to their communities as regulated utilities, the two companies are a strong fit that will provide many compelling opportunities for growth and investment. The Peoples acquisition puts Aqua in a strong position to continue to deliver shareholder value while also serving the company’s mission of improving the lives of customers through investing in infrastructure for safe and reliable service.
- Acquisition of Peoples natural gas utility adds more than 740,000 customers and increases rate base by nearly 50%
- Delivered 73 consecutive years of dividend payments and 28 dividend increases in the last 27 years
- Plans to invest more than $500 million in improving water and wastewater infrastructure in 2018
- Resulting company will be approximately 70% water and 30% gas and maintain strong municipal water and wastewater acquisition strategy
Providing midstream energy services to producers across the United States, Enterprise Products Partners L.P. (NYSE: EPD) holds assets including ~50,000 miles of natural gas, natural gas liquids (NGLs), crude oil, refined products, and petrochemical pipelines; storage facilities accommodating 260 million barrels of NGLs, refined products, and crude oil; 28 natural gas processing plants; 23 propylene fractionators; and import/export terminals with an offloading capacity of 14,000 barrels per hour and a loading capacity of 27,500 barrels per hour. For more information, visit www.enterpriseproducts.com.
- More than $56 billion in assets
- A market capitalization more than $60 billion
- $38 billion in organic growth projects and $26 billion in major acquisitions since the company’s IPO in 1998 through 2017
- $400 million in growth capital projects completed so far in 2018
1-800-FLOWERS.COM, Inc. (NASDAQ: FLWS) is a leading provider of gifts for all celebratory occasions. The company’s focus on customer experience as its “number one product” has enabled it to become its customers’ go-to destination for gifting solutions across e-commerce, mobile, and social-commerce channels. In addition, its commitment to investing and innovating to enhance customer engagement has placed the company at the forefront of the fast-growing “conversational commerce” space, which leverages “big data” and artificial intelligence (AI) technology. The 1-800-FLOWERS.COM, Inc. family of brands includes Harry & David®, The Popcorn Factory®, Cheryl’s Cookies®, 1-800-Baskets.com®, Wolferman’s®, Moose Munch®, Personalization Universe®, Simply ChocolateSM, Stock Yards® and FruitBouquets.comSM.
- Annual revenues exceeding $1.1 billion
- Strong balance sheet and growing free cash flow
- Broad and leverageable operating platform
- An experienced management team aligned with shareholders
Steel Partners Holdings (NYSE: SPLPPRA) is a diversified global holding company that owns and operates businesses in three principal sectors: Diversified Industrial Products, Energy Services, and Financial Services. The company also holds significant interests in four publicly traded companies: Aerojet Rocketdyne (5.3%); Aviat Networks (12.5%); Babcock & Wilcox (17.8%); and Steel Connect (45.9%).
Steel Partners Preferred units currently have a remaining term of approximately seven years, a $25 liquidation value, and provide quarterly cash flow with a 20% redemption in 2020 and the remainder in 2026. The current yield to maturity is approximately 9%. The company’s common units trade on the New York Stock Exchange under symbol SPLP.
- Management ownership of Preferred units: 12%; management ownership of Common
- Strong free cash flow and balance sheet, with total cash and investments of $335 million as of September 30, 2018
- 2017 revenue of $1.4 billion; 2018 reported guidance of $1.5–$1.6 billion
- 2017 adjusted EBITDA of $164 million; 2018 reported guidance of $180–$188 million
- 4,800 employees and 75 locations across 8 countries as of December 31, 2017
- Culture of continuous improvement and implementing lean manufacturing tools
Southwest Gas Holdings, Inc. (NYSE: SWX), through its subsidiaries, engages in the business of purchasing, distributing, and transporting natural gas, and providing construction services across North America. Southwest Gas Corporation (“Southwest”), a wholly owned subsidiary, safely and reliably delivers natural gas to nearly two million commercial and residential customers in Arizona, California, and Nevada. Centuri Construction Group, Inc. (“Centuri”), majority-owned subsidiary, provides construction and maintenance services throughout the United States and Canada.
- Dividend growth of approximately 9.5% for the last five years ended March 31, 2018
- Total annualized shareholder return of 12.4% for the 10-year period ended March 31, 2018
- 1.6% customer growth for the 12-month period ended March 31, 2018 (Southwest)
- Two million customers served (Southwest)
- 2018–2020 capital expenditures estimated at $2 billion (Southwest)
- Projecting 12% annual rate base growth from 2018 to 2020 (Southwest)
- One of North America’s largest providers of utility and energy construction services (Centuri)
- Continued growing trend with record financial results in 2017 (Centuri)
National Retail Properties Inc. (NYSE: NNN) attributes its remarkable record of stability and shareholder return to portfolio diversity and the long-term relationships it maintains with more than 400 major national and regional retailers housed in single tenant retail properties on a triple net lease basis. This strategy has resulted in annual dividend increases for 28 consecutive years.
- Nearly 2,800 single-tenant retail properties across forty-eight states
- 276 properties acquired in 2017
- A portfolio average of 98% occupancy over fifteen years
- 8% average annual core FFO growth per share over the past six years