Connecticut Town Approves $10M Acquisition of Water Company
Connecticut Water Service Inc. announced that the sale of its assets of the Barnstable Water Co., assets moved a step toward completion.
In a unanimous vote, the Barnstable Town Council approved the $10 million acquisition for the water company's assets and $1 million for BARLACO land at a special, open town meeting last week.
In proposing the acquisition to the Town Council, Barnstable Town Manager John C. Klimm, praised the Connecticut Water subsidiary's operations, service to customers, and its management. Residents attending the meeting commented on the importance of the Town having local control and ownership of its water and land assets. Based on the approval, the closing has been tentatively scheduled for May 18, 2005.
Marshall T. Chiaraluce, Connecticut Water Service CEO and chairman said, "Despite the excellent service water customers are receiving and the tax benefits to the Town, we understand that residents want to own and control the water-related assets in their Town."
"From a business standpoint," Chiaraluce continued, "we view this negotiated purchase as an opportunity to continue our business relationship with the Town. We will operate the system under a management contract for several months while the Town decides on its strategy for long-term operations and investment in the water system. We feel we are in a good position to be a long-term partner with the Town in this regard."
The transaction has also received unanimous approval from the boards of directors of Connecticut Water Service and its subsidiaries.
Connecticut Water Service Inc. (www.ctwater.com) is the largest, domestic-based, investor-owned water utility in New England. It provides water to over 87,750 customers in 42 towns in Connecticut and Massachusetts, as well as water-related services under contract in municipalities and companies.