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Morgan Stanley Infrastructure Near a Deal for Seven Seas

Gillian Tan

(Bloomberg) -- A fund managed by Morgan Stanley Infrastructure Partners is in advanced talks to acquire AquaVenture Holdings Ltd.’s water-treatment business for more than $500 million, according to people with knowledge of the matter.

A deal for the unit, Seven Seas Water, could be announced within the next week, said one of the people, who asked not to be identified because the talks are private. A transaction hasn’t been finalized, and it’s possible one may not be reached.

The Morgan Stanley vehicle is in discussions to buy the business -- which develops, owns and operates water production and wastewater treatment plants -- from Culligan, a company backed by Advent International Corp. Last month, Culligan agreed to buy AquaVenture in a deal valued at about $1.1 billion including debt.

An Advent spokesman declined to comment, while representatives for Morgan Stanley, Culligan and AquaVenture didn’t immediately respond to messages seeking comment.

Seven Seas provides wastewater treatment and desalination services that deliver more than 8.5 billion gallons of pure water a year to government, municipal, industrial and hospitality customers, including those that operate in regions with limited access to potable water, according to its website.

Cash-rich infrastructure funds are expected to be active dealmakers this year, with $212 billion of capital to deploy on hand, according to data provider Preqin. Morgan Stanley last month raised $5.5 billion for its latest global infrastructure fund.

To contact the reporter on this story: Gillian Tan in New York at gtan129@bloomberg.net

To contact the editors responsible for this story: Alan Goldstein at agoldstein5@bloomberg.net, Daniel Taub, Peter Eichenbaum

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