French Suez, a waste management and water treatment company, plans to sell a 20 percent stake in its U.S. regulated water business to Netherlands-based pension fund PGGM for $601 million.
The sale of its U.S. water business will help improve Suez's debt to earnings before interest, tax, depreciation and amortization ratios.
The proceeds of the sale will help Suez finance capital expenditures in the U.S regulated water sector, which will increase from $250 million to about $320-$350 million.
The transaction is expected to be completed by the first half of 2019.