BRYN MAWR, Pa.--(BUSINESS WIRE)--
Aqua America announced that the Fort Wayne City Council has unanimously
voted to approve the purchase of Aqua Indiana's drinking water system
assets in southwest Allen County, Indiana, for $67 million, which
comprises $50.1 million in addition to $16.9 million the city already
paid Aqua for its water and wastewater system assets in the northern
part of Fort Wayne in a contested decision in 2008. The agreement
requires approval by the Indiana Utility Regulatory Commission, and the
transaction is expected to close in the fourth quarter of 2014.
"We believe Aqua received fair value for these assets, and we're pleased
to be able to resolve all litigation," said Aqua America Chairman and
CEO Nicholas DeBenedictis. "We look forward to working with the city to
enhance economic development in Fort Wayne in the future.
"This sale will provide Aqua with more than $50 million in cash that we
can reinvest in water and wastewater infrastructure," said DeBenedictis.
"We are optimistic that the sale can close in the fourth quarter and
would add 6 to 7 cents to earnings per share in 2014."
The Aqua Indiana water system in southwest Allen County currently serves
about 12,600 homes and businesses. Aqua Indiana will continue to provide
wastewater service to its current customers in southwest Allen County
and will treat in excess of 1.5 million gallons per day of wastewater
flow from the city's sewer system in western and southwestern Allen
County; this flow size is the equivalent of gaining an estimated 10,000
sewer customers. The city and Aqua Indiana will cooperate on wastewater
master planning and the establishment of efficient service boundaries.
This release contains forward-looking statements within the meaning of
The Private Securities Litigation Reform Act of 1995, including, among
others, the ability to obtain approval by the respective regulatory
bodies and to close on the transaction. 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; 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
Gretchen Toner
O: 610-645-1175
M:
484-368-4816
GMToner@AquaAmerica.com
or
Brian
Dingerdissen
Director of Investor Relations
610-645-1191
BJDingerdissen@AquaAmerica.com
Source: Aqua America
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