Aqua America Inc. has completed the sale of its Maine operations to Connecticut Water Service Inc., which includes 11 water systems serving 16,000 customers in 17 communities throughout Maine.
As called for under the previously announced agreement, at the closing Connecticut Water purchased all of the capital stock of Aqua Maine Inc. for an aggregate cash purchase price of approximately $35.8 million, plus the assumption of long-term debt that, as of Dec. 31, 2010, was approximately $17.7 million, subject to certain closing adjustments. Aqua America has owned the company since March 1999 and expects to book a gain on the transaction in the first quarter of 2012.
“We’ve enjoyed providing service in Maine over the last 12 years,” said Aqua America Chairman and CEO Nicholas DeBenedictis. “Although our Maine operations have performed well, our sale of the system to Connecticut Water benefits both companies by providing Aqua America cash that can be invested in capital in areas where we have critical mass and in regions that afford us additional growth opportunities and allowing Connecticut Water to expand in New England, buying a system that is well managed and operated, and has a strong record of environmental compliance.”
The sale to Connecticut Water is the first of two such sales Aqua America is expected to close this year. The company announced in July 2011 an agreement to sell its New York operations to American Water Works Co. Inc. At the same time, Aqua signed a separate agreement to acquire all of American Water’s regulated operations in Ohio, which include eight water systems and one wastewater system that serve approximately 57,280 water and wastewater customers, bringing Aqua’s new total in that state to approximately 145,000 customers.
In June 2011, Aqua America’s Texas subsidiary acquired 51 water and five wastewater systems from American Water’s Texas subsidiary, including 4,200 water and 1,100 wastewater customers. That transaction was the final step in an exchange between the two companies that began in May, when Aqua America sold the bulk of its regulated Missouri operations to American Water.
Following the upcoming sale of New York, Aqua America will have concentrated its regulated operations in nine states: Pennsylvania, Ohio, North Carolina, Illinois, Texas, New Jersey, Florida, Indiana and Virginia. The company also maintains a non-regulated wastewater operation in Georgia.
Source: Aqua America Inc.
