United Utilities Contract Solutions, provider of metering, waste treatment and connections for utility companies, has attracted plenty of interest after being placed on the market for £500m.
The non-regulated business belongs to United Utilities, which is the largest listed water firm in the UK. JP Morgan has been mandated to manage the sale.
The list of potential buyers includes Charterhouse, 3i, which has a similar business to UUCS, Advent International, Cinven and French industrial company Suez.
Bidders are currently doing due diligence in time for the deadline for the final bids in a fortnight's time.
United Utilities' other non-regulated operations include outsourcing contracts for Welsh Water, Southern Water, Scottish Water, Northern Gas Trading and Electricity North West. It also installs meters for British Gas Trading.
The company also has three Scottish PFI operations and businesses in Australia, Estonia, Bulgaria and Poland.
UU sold its electricity distribution division to North West Electricity Networks in 2007, which went towards a £1.5bn cash return to shareholders in 2008. It also sold its 15% and 11.7% stakes in Northern Gas Networks and Manila Water in November 2009.
The company has plans to spend £3.6bn on infrastructure over the next five years.
