Florida Water Services Sells Systems Under Threat of Condemnation
Florida Water Services Corporation, a subsidiary of ALLETE, Inc., received approximately $145 million from the communities of Marco Island and Deltona for the sale under threat of condemnation of Florida Water's water and wastewater systems serving those communities in Florida.
Florida Water Services has been in the process of selling its assets. Approximately 90 percent of Florida Water assets have been sold or are under contract to be sold for $442 million, which represents an after-tax gain to Florida Water, net of all selling and transaction costs, of about $85 million. To date, the expected net cash proceeds after transaction costs, retirement of most Florida Water debt, and payment of income taxes are approximately $260 million. Net proceeds from the sale will be used to retire debt at ALLETE.