BRYN MAWR, Pa.--(BUSINESS WIRE)--
Aqua America, Inc. (NYSE: WTR) announced today that it has completed the
sale of its Maine operations to Connecticut Water Service, Inc. (NASDAQ:
CTWS) effective January 1, 2012, 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 December 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 (7 water systems that
serve approximately 50,520 customers) to American Water Works Company,
Inc. (NYSE: AWK). At the same time, Aqua signed a separate agreement to
acquire all of American Water's regulated operations in Ohio, which
include 8 water systems and 1 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 (16,000 people). 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 (approximately 3,700 customers) 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.
Aqua America is one of the largest U.S.-based, publicly-traded water
utilities and serves almost 3 million residents in Pennsylvania, Ohio,
North Carolina, Illinois, Texas, New Jersey, Indiana, New York, Florida,
Virginia, 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 projected impact of the Company's strategy to focus
its resources where it has critical mass, the projected benefits of the
Company's growth strategy, the expected gain of the sale of the Maine
operations, the use for and anticipated impact of the proceeds from the
sale of the Maine operations and the timing of the sale of the company's
New York operations. There are important factors that could cause actual
results to differ materially from those expressed or implied by such
forward-looking statements including: 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, 2010,
which is on file with the Securities and Exchange Commission. Neither
Aqua America nor Connecticut 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.
Gretchen Toner, 610-645-1175
gmtoner@aquaamerica.com
or
Brian
Dingerdissen
Director, Investor Relations
610-645-1191
bjdingerdissen@aquaamerica.com
Source: Aqua America, Inc.
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