BRYN MAWR, Pa.--(BUSINESS WIRE)--
Aqua Resources, Inc., the unregulated subsidiary of Aqua America, Inc.
(NYSE: WTR) today announced that it has purchased Tri-State Grouting LLC
(TSG) of Newark, DE, which specializes in storm and wastewater
infrastructure and rehabilitation. The purchase price is approximately
$3 million in cash with certain revenue growth requirements. Current TSG
revenues are $6 million annually.
TSG will remain in Newark and all of current TSG management will remain
with the company following the acquisition. Aqua Resources will provide
executive management, engineering expertise and capital to support and
help grow the TSG business line.
"This agreement both fulfills Aqua's core business model of
growth-through-acquisition and supports the model by providing another
avenue and skill set that will allow us to continue to increase
opportunities for our regulated and non-regulated businesses," said Aqua
America Chairman and CEO Nicholas DeBenedictis. "Our Aqua Resources unit
already provides a wide array of services to the water and wastewater
industry including operations and maintenance contracts, liquid waste
hauling and water and wastewater system repair and maintenance. The
specific services provided by TSG will complement these services by
adding another specialty to our current menu of services."
"Delaware is home to many large and successful companies, but our
state's economy relies on our strong, durable small business sector.
With 37 years of quality service to its name, Tri-State Grouting is the
epitome of the Delaware small business," Delaware Governor Jack Markell
said. "We're happy to see that this tradition of excellence will
continue here, with Tri-State Grouting's management staying in place to
make the acquisition with Aqua seamless."
The market for storm and wastewater infrastructure and rehabilitation
services is in high demand due to the nation's rapidly aging
infrastructure. The American Society of Civil Engineers (ASCE) estimates
the U.S. will need to spend $298 billion on wastewater and storm water
systems over the next 20 years. "We are excited about the purchase by
Aqua, which has the engineering expertise and financial wherewithal to
support our existing business and help the company continue to grow,"
said TSG President Mark Schneider.
TSG has been in business since 1977 and has 35 employees. It currently
does business in six states, including Pennsylvania, as an example,
where the ASCE recently graded the state's wastewater infrastructure a
D-. The entire Mid-Atlantic region is plagued with aging infrastructure
and will need to invest billions of dollars to address clean water
standards.
TSG specializes in the cleaning, televising and trenchless repair of
storm and sanitary sewer pipe and appurtenances. The company televises
more than 1 million lineal feet of pipe annually ranging in size from 4
to 60 inches.
Aqua America has completed seven regulated acquisitions to date in 2014,
and more than 300 acquisitions company-wide since 1995. Last year, Aqua
America completed 15 water and wastewater acquisitions and grew its
number of customers a total of 1.3 percent.
Aqua America is one of the largest U.S.-based, publicly traded water
utilities and serves nearly 3 million people in Pennsylvania, Ohio,
North Carolina, Illinois, Texas, New Jersey, Indiana and Virginia. Aqua
America is listed on the New York Stock Exchange under the ticker symbol
WTR. Visit AquaAmerica.com
for more information.
This release contains forward-looking statements within the meaning of
The Private Securities Litigation Reform Act of 1995, including, among
others, the ability of TSG to generate revenues at the level indicated.
There are important factors that could cause actual results to differ
materially from those expressed by such forward-looking statements,
including housing and customer growth trends; general economic trends;
infrastructure rehabilitation programs; and other factors discussed in
our Annual Report on Form 10-K, which is on file with the Securities and
Exchange Commission. For more information regarding risks and
uncertainties associated with Aqua America's business, please refer to
Aqua America's annual, quarterly and other SEC filings. Aqua America is
not under any obligation— and expressly disclaims any such obligation—
to update or alter its forward-looking statements whether as a result of
new information, future events or otherwise.
WTRF
Aqua America, Inc.
Justin Pizzi
Director of Marketing &
Communications
O: 610-520-6308
M: 484-868-5032
JCPizzi@AquaAmerica.com
or
Brian
Dingerdissen
Director, Investor Relations
610-645-1191
BJDingerdissen@AquaAmerica.com
Source: Aqua America, Inc.
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