SJW Corp. announced that SJWTX Water, Inc, a newly formed Texas corporation and wholly-owned subsidiary of SJW Corp., and Canyon Lake Water Supply Corp. (CLWSC), a Texas nonprofit water supply corporation, have signed an agreement pursuant to which SJWTX Water agreed to purchase substantially all of the assets of CLWSC.
CLWSC is a member-owned nonprofit water utility headquartered in Canyon Lake, Texas. The utility serves a population of approximately 20,000 with more than 6,700 connections in a service area comprising approximately 390 sq mi surrounding Canyon Lake in western Comal County and southern Blanco County.
The purchase price of the assets consists of $3.2 million in cash payable to CLWSC at closing; SJWTX Water's assumption, retirement or recapitalization of all of CLWSC's outstanding debt and bond obligations (approximately $20 million); and SJWTX Water's payment of certain CLWSC transaction expenses.
The acquisition will be subject to the satisfaction of various conditions set forth in the agreement, including the approval of the members of CLWSC and the Texas Commission on Environmental Quality and other approvals required under the parties' governing documents and applicable laws and regulations.
Source: SJW Corp.
