Florida Public Utilities Company has announced an agreement with the City of Fernandina Beach to sell its water assets to the city. The current value of the sale is approximately $24.6 million.
"The sale fits with our strategic goal of providing for customers' energy needs," stated John T. English, president and CEO of Florida Public Utilities Company. "We expect that this sale will assist us in concentrating on the expansion of our core energy-related business and provide additional working capital for acquisitions."
"This purchase fulfills the city's goal to furnish quality water and sewer services to its present and future residents," stated Robert Mearns, city manager.
Pursuant to the agreement, the due diligence period will last 45 days. At that time a decision on whether to proceed with the sale will be made by the city.
If the sale proceeds, a closing date will occur by the end of March 2003. The city will retain all of the water employees for at least one year at their current pay and approximate benefits.
Source: PR Newswire