American Water Works Co. Inc., the largest publicly traded U.S. water and wastewater utility company, announced the financial close of its sale of regulated operations in Arizona and New Mexico to EPCOR USA. The agreement of sale was announced on Jan. 24, 2011, at a purchase price of $470 million.
The pre-tax gain on sale, prior to allocation of a portion of the goodwill from the parent company, is approximately $50 million. After allocation of the goodwill, the pre-tax gain and its impact on net income is expected to be minimal. The completion of the transaction was contingent upon regulatory approval in Arizona and New Mexico, both of which have been received.
“Today is the conclusion of months of work on the part of many of our employees,” said Jeff Sterba, CEO of American Water. “This transaction allows American Water to continue to focus on areas where we can best serve customers and meet our objectives, and it allows our employees in Arizona and New Mexico new opportunities with EPCOR. I am pleased to celebrate this success and the conclusion of this process.”
Source: American Water