Pennsylvania American Water, a subsidiary of American Water (NYSE: AWK), announced today that it has closed acquisitions to purchase the assets of two water systems in southwestern Pennsylvania. The combined purchase price of the newly acquired systems, which serve nearly 860 people, is approximately $400,000.
The company’s purchase of the two systems from the North Fayette County Municipal Authority further expands Pennsylvania American Water’s service area. With the acquisitions of the Balsinger Public Water System and Springfield Pike Public Water System, the company’s service territory now extends into portions of Menallen, German and Connellsville Townships. Pennsylvania American Water provides service to more than 16,000 customers in Fayette County.
"Each system serves portions of Fayette County communities that are adjacent to our existing water system footprint,” said Pennsylvania American Water President Kathy L. Pape. “These acquisitions are a great example of our focus on the regionalization of community water systems, which provides economies of scale, improved water quality and long-term service reliability."
Pape said the company is making significant capital investments to upgrade the newly acquired Springfield system, including the installation of two new booster stations to provide improved reliability.Pennsylvania American Water is the largest water utility in the state, providing high-quality and reliable water and/or wastewater services to approximately 2.2 million people. Founded in 1886, American Water is the largest publicly traded U.S. water and wastewater utility company. With headquarters in Voorhees, N.J., the company employs approximately 7,000 dedicated professionals who provide drinking water, wastewater and other related services to an estimated 15 million people in more than 30 states and parts of Canada. More information can be found by visiting www.amwater.com. This release contains forward looking statements, including, among others, our plan to continue our long-term strategy of capital investment in our systems. There are important factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements including: general economic business conditions, unfavorable weather conditions, changes in regulations or regulatory treatment and availability and the cost of capital. We undertake no obligation to publicly update or revise any forward-looking statement.
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