American Water Purchases Dale Service Corp.

Nov. 15, 2013
The purchase is the largest wastewater acquisition for American Water in 10 years

American Water Works Company Inc. announced that its Virginia American Water subsidiary has completed its acquisition of Dale Service Corp., a wastewater utility company in Northern Virginia. The total value of the transaction is approximately $27.7 million. With approximately 20,000 customers (a population of about 50,000 people), this is the largest wastewater acquisition in more than 10 years for American Water, and marks the entry of Virginia American Water, which is the largest investor-owned water utility in Virginia, into the wastewater services market.

The service area of the newly acquired entity overlaps Virginia American Water’s existing water service area in Prince William County.

“This acquisition is a great example of how we grow our business in areas that make sense for the company and its customers,” said Jeff Sterba, president and CEO of American Water. “By expanding into the wastewater market in our existing water service footprint, we create greater efficiency and economies of scale, which benefits our customers.”

As part of the purchase, which was approved by the Virginia State Corporation Commission, Virginia American Water’s new subsidiary will operate two wastewater treatment plants with a combined capacity of 9.2 million gal per day. Since 1966, Virginia American Water has been providing water services to most of the Dale Service Corp. wastewater customers.

“We are pleased to be able to provide wastewater service to Dale Service Corporation’s customers, the majority of whom already know Virginia American Water as their provider of high-quality water service,” said Virginia American Water President William R. Walsh. “We are equally pleased to bring on the 24 employees of Dale Service, who will now represent Virginia American Water in providing wastewater service that reflects our commitment to environmental stewardship, customer service and corporate responsibility.”

Source: American Water

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