Severn Trent Water

Severn Trent Water, a leading UK utilities group, held a mixed portfolio of Italian investments, comprising both majority- and minority-owned subsidiaries. Over time, these assets had become strategically misaligned, operationally complex and resource-draining. Management faced growing internal pressure to refocus on core UK operations while also navigating unfamiliar regulatory and legal environments across multiple Italian jurisdictions.

There was no clear roadmap for divestment or turnaround, and existing portfolio performance varied significantly, requiring both strategic evaluation and pragmatic resolution.

BM&T was appointed as strategic advisor to the UK parent company to assess, rationalise and support decision-making across the Italian portfolio.

Our work included:

• Independent review: Evaluated the commercial viability, governance structures and financial performance of each entity, clarifying which assets held turnaround potential and which required divestment.
• Strategic options analysis: Designed tailored restructuring, disposal or wind-down strategies across the portfolio, considering regulatory, tax and reputational implications.

• BM&T delivered a full diagnostic and options framework for each investment, enabling Severn Trent Water to make informed, strategic decisions.
• We enabled Severn Trent Water to refocus on core operations while responsibly exiting from peripheral international holdings.