Aqua America sells Missouri operation to American Water completing first
step in property swap announced last year
BRYN MAWR, Pa.--(BUSINESS WIRE)--
Aqua America, Inc. (NYSE: WTR) announced today that it has sold the bulk
of its regulated Missouri operations to American Water Works Company,
Inc. (NYSE: AWK) for $3.2 million, completing the first step of a unique
transaction the two companies first announced last December. Aqua
America noted that it has a separate agreement to sell its eight
remaining small regulated wastewater systems to the City of Taos., which
is expected to close during the third quarter.
The sale to American included more than 60 small water and wastewater
systems, which serve approximately 3,700 customers in Missouri. The sale
is indicative of Aqua America's desire to focus the company's regulatory
relationships in states where it already has a critical mass of
customers and can capitalize on economies of scale for the benefit of
its customers.
Still pending is the sale of American Water's regulated operations in
Texas to Aqua America's Texas subsidiary, which is expected to close
during the second quarter. Under that agreement with American Water,
Aqua America will purchase 51 water and five wastewater systems in
Texas, which serve nearly 4,200 water and nearly 1,100 wastewater
customers (approximately 16,000 people) for approximately $6 million.
The systems serve parts of Brazoria, Harris, Liberty, Matagorda and
Montgomery counties in the greater Houston metropolitan area. The
acquisition, which requires approval by the Texas Commission for
Environmental Quality, will increase the customer base of Aqua Texas by
approximately 8 percent.
When the deal was announced last December, Aqua America Chairman and CEO
Nicholas DeBenedictis said, "This transaction makes perfect business
sense for both companies as Aqua America is better suited to own and
operate the American systems in Texas and American Water is better
equipped to own and operate our systems in Missouri," said DeBenedictis.
"This opportunity will enable each of these professional companies to
maximize their ability to deliver quality water and wastewater service
to customers in both Texas and Missouri."
Aqua America is one of the largest U.S.-based, publicly-traded water
utilities and serves almost 3 million residents in Pennsylvania, Ohio,
Illinois, Texas, New Jersey, Indiana, Virginia, Florida, North Carolina,
Maine, Missouri, New York, and Georgia. Aqua America is listed on the
New York Stock Exchange under the ticker symbol WTR.
This release contains forward-looking statements within the meaning of
The Private Securities Litigation Reform Act of 1995 that address, among
other things, the effect of the acquisition of the Texas systems on the
Company and the benefits of the acquisition, the expected timing of the
transactions and the Company's strategy to focus its resources where it
has critical mass. There are important factors that could cause actual
results to differ materially from those expressed or implied by such
forward-looking statements including: regulatory approvals for the
transaction; the risk that the acquired company's business will not be
successfully integrated; the costs related to the transaction; the
inability to obtain or meet conditions imposed for governmental
approvals for the transaction; the risk that anticipated benefits will
not be obtained or will not be obtained within the time anticipated; and
other key factors that we have indicated could adversely affect our
business and financial performance discussed in our Annual Report on
Form 10-K for the fiscal year ended December 31, 2009, which is on file
with the Securities and Exchange Commission. Neither Aqua America nor
American Water is under any obligation (and each 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.
Donna Alston
Manager Communication
610-645-1095
dpalston@aquaamerica.com
or
Brian
Dingerdissen
Director, Investor Relations
610-645-1191
bjdingerdissen@aquaamerica.com
Source: Aqua America, Inc.
News Provided by Acquire Media