Business Stream has bought the non-domestic customer base of Southern Water in a deal which creates the third biggest UK non-domestic water retailer ahead of retail market opening in England in April 2017.

The acquisition provides Business Stream, Scotland’s biggest non-domestic water supplier, with a major foothold in England, further strengthening its position as it prepares to compete in the English water market .

 The deal, which takes effect from April next year, will create the third biggest company in the UK non-domestic market for water and waste water services, with a combined market share of over 10%.

The acquisition by Business Stream is a significant milestone in its plans to win new customers in England, where its existing customers include House of Fraser and Bernard Matthews. Southern Water serves around 105,000 non-domestic customers across Kent, Sussex, Hampshire and the Isle of Wight. The acquisition will almost double the size of Business Stream’s customer base.

 In order to provide continuity of service to Southern Water’s customers and maintain existing relationships, a number of Southern Water’s account managers will be transferring to Business Stream as part of the acquisition. In addition, up to 40 new jobs will be created at Business Stream’s Edinburgh headquarters to support the expanded operation.

 Jo Dow, Business Stream Chief Executive, said:

“The acquisition of Southern Water’s customer base provides us with a springboard for growth ahead of the English market opening next year. The new market will create huge opportunities for Business Stream. We are ideally placed to secure market share by leveraging our knowledge, capability and experience, gained from eight years of operating in the highly competitive Scottish market.”

 “The addition of the Southern Water’s customer base provides Business Stream with increased scale which will enable us to continue delivering a first class service, to invest in initiatives which will enhance that experience, and to deliver savings for all our customers. By creating the third largest UK non-domestic water supplier, we have also forged a bright future for our existing workforce, creating new jobs and building a foundation for growth when the English market opens fully.”

 Matthew Wright, CEO of Southern Water said:

“After looking carefully at the options available to us we have decided to sell our non-household retail business to Business Stream, a specialist retailer that has been at the forefront of the competitive market in Scotland for eight years.  Business Stream’s track record of delivering savings and value-added services to customers gave us confidence that transferring our non-household customers to their care would be the best solution.”

 Roseanna Cunningham, Scottish Cabinet Secretary for Environment, Climate Change and Land Reform, said:

 “It is good news that Business Stream, as a publicly owned organisation, has concluded this significant deal to provide services to Southern Water’s non domestic water customers. We are fully committed to keeping Business Stream in public ownership but it is right that Business Stream takes every opportunity to compete in the commercial marketplace in which it operates.”

Business Stream is the largest operator in the Scottish non-domestic water market. Headquartered in Edinburgh, it also has an office in Glasgow, and employs around 250 staff. The company is a wholly-owned subsidiary of Scottish Water with its own board and independent management team.