Southwest Water Company Acquires AquaSource Contract Operations
Southwest Water Company has acquired the majority of AquaSource, Inc.'s water and wastewater contract operations business for an expected purchase price, after adjustments, to exceed $10 million in cash. The acquisition includes AquaSource's contract operations in Colorado and the Houston, Texas, area. At closing, combined revenues from these two business units are expected to be in excess of $16 million. Closing of the transaction is expected in the fourth quarter. AquaSource, Inc., is a subsidiary of DQE.
"This acquisition marks an important step in our path of long-term strategic growth," Anton C. Garnier, Southwest Water president and chief executive officer, said. "Purchasing the AquaSource business units significantly expands our Services Group footprint, introducing us to a new market in Colorado and strengthening our presence in the greater Houston area. We look forward to welcoming more than 230 new employees to the Southwest Water team."
"The AquaSource operations present an excellent strategic fit with Southwest Water," Garnier continued "We anticipate that our more than 25 years of experience serving state, county, municipal and industrial customers will result in a seamless transition. We believe this acquisition offers added value for our stockholders since we expect the transaction to be immediately accretive, and our new customers will benefit as well, as we look forward to providing them with the same level of award-winning service on which we have built our reputation."
Southwest Water Company provides a broad range of services, including water production, treatment and distribution, wastewater collection and treatment, public works services and utility submetering. The company owns regulated public utilities and also serves cities, utility districts and private companies under contract. More than 1.5 million people in 30 states from coast to coast depend on Southwest Water for high-quality, reliable service.