American Water to Expand in New York
Company set to purchase Aqua America’s New York operations
American Water Works Co. Inc. announced that it has agreed to purchase Aqua America Inc.’s regulated operations in New York while also selling its regulated operations in Ohio to Aqua America. The agreement establishes American Water as the largest investor-owned water utility in the state of New York.
Under the agreement with Aqua, American Water will purchase Aqua’s seven regulated water systems in New York for approximately $71 million, adding approximately 152,000 people in four counties to Long Island American Water’s customer base.
In a separate agreement, American Water will sell its eight regulated water systems and one wastewater system in Ohio to Aqua for approximately $120 million. Ohio American Water serves approximately 200,000 people. The completion of both transactions is subject to customary closing conditions including regulatory approval by public utility commissions in both New York and Ohio.
Both companies commended the agreement as a way to strengthen and grow operations in their respective key states, taking advantage of critical mass and providing additional opportunities for both companies to continue to provide excellent, local customer service. American Water and Aqua America expect both acquisitions to close during the first quarter of 2012.