Southwest Water to Acquire Wastewater Utility

Sept. 20, 2005
Transaction Expands Company's Presence in Alabama

Southwest Water Co. has reached an agreement to purchase the Shelby County, Alabama wastewater system for $8.5 million. Both the Shelby County Commission and the Southwest Water board of directors have approved the transaction, which is scheduled to close within a month subject to customary closing conditions. The wastewater utility serves approximately 4,400 residential and commercial customers in a high growth area located south of Birmingham in northern Shelby County. Terms of the agreement include annual customer rate increases of 8% for 11 years.

Alabama-based Novus Utilities, Inc., a subsidiary of Southwest Water, has been operating this wastewater treatment plant and sewage collection system under contract since 1992 and will continue to do so after the acquisition. Novus Utilities operates and maintains public, private and industrial water and wastewater systems and provides a variety of related services to customers throughout central and northern Alabama and contiguous states.

Anton C. Garnier, Southwest Water chairman and CEO, said, "This transaction marks an important expansion of our utility footprint, a key element of our long-term strategy for profitable growth. We look forward to providing the residents of Shelby County with quality wastewater treatment services for many years to come."

Southwest Water Company provides a broad range of operation, maintenance and management services, including water production, treatment and distribution, wastewater collection and treatment, customer service and utility infrastructure construction management. The company owns regulated public utilities and also serves cities, utility districts and private companies under contract. Approximately two million people from coast to coast depend on Southwest Water for service.

Source: Southwest Water Co.

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