Utility focusing its efforts in growth states with economies of scale
BRYN MAWR, Pa.--(BUSINESS WIRE)--
Aqua America, Inc. (NYSE: WTR) announced today that it has reached an
agreement to sell its Maine operations to Connecticut Water Service,
Inc. (NASDAQ: CTWS) for $53.5 million, subject to certain adjustments at
closing. Aqua America has owned the company, which includes 11 water
systems serving 16,000 customers in 17 communities throughout Maine,
since March 1999. The sale, which requires approval of the Maine Public
Utilities Commission, is expected to be completed during the first
quarter of 2012.
The sale to Connecticut Water is the sixth such announcement signed by
Aqua America in the past seven months. "The sale of our Maine operations
is consistent with our strategy to focus our resources in states where
we have critical mass and consolidated rates to efficiently support our
growth-through-acquisition model," said Aqua America Chairman and CEO
Nicholas DeBenedictis. "The acquisition allows Connecticut Water to
expand in New England, buying an Aqua America system that has benefitted
from key capital investments to enhance its environmental compliance."
Earlier this month, Aqua announced that it will sell its regulated
operations in New York (50,520 customers) to American Water (NYSE: AWK)
and purchase American Water's operations in Ohio (57,280 customers). In
June, Aqua America's Texas subsidiary acquired 51 water and five
wastewater systems from Texas American including 4,200 water and 1,100
wastewater customers (16,000 people) for $6 million—the approximate book
value of the assets. That transaction was the final step in a property
swap 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 for $3.2 million.
Having recently exited or signed agreements to exit South Carolina,
Missouri (anticipated sale of final wastewater operation in third
quarter 2011), New York and Maine, 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 maintains a non-regulated wastewater operation in Georgia.
Virginia, the state in which Aqua America now has the fewest customers,
was recently cited by CNBC as the number one state in the nation to do
business. Two other states in which Aqua America has utility operations,
Texas and North Carolina, each made the top five on the list and all of
Aqua America's state operations are in the nation's 15 largest (most
populated) states. "We are continuing to focus our utility operations in
states that have a positive regulatory and business climate that allow
us to continue to make the capital investments necessary to deliver
quality water and reliable service to our customers, while providing the
opportunity to earn an adequate return on that investment for our
shareholders," said DeBenedictis. "We will also continue to pursue
opportunities in other states consistent with our
growth-through-acquisition strategy."
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, Maine, Missouri, 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 timing and effect of the sale of the Maine systems on
the Company, the projected impact of the Company's strategy to focus its
resources where it has critical mass and consolidated rates, the
projected benefits of the Company's growth strategy and the possible
benefits from the regulatory and business climate in certain states.
There are important factors that could cause actual results to differ
materially from those expressed or implied by such forward-looking
statements including: regulatory approval of the transaction; 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, 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.
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.
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