Aqua America, Inc. (NYSE: WTR) announced today that its Pennsylvania and Virginia subsidiaries have acquired water and wastewater assets in two separate transactions.
Aqua Pennsylvania, Inc. has acquired the water and wastewater system assets of Total Environmental Solutions, Inc., (TESI), which serve approximately 6,000 people in the Treasure Lake community of Sandy Township, Clearfield County for $11.8 million. The water and wastewater systems are the third and fourth systems Aqua Pennsylvania has purchased from TESI, having purchased the company’s Beech Mountain water and wastewater systems in May 2012.
The acquisition expands Aqua Pennsylvania’s service territory into Clearfield County, bringing the number of counties served by the utility to 31. The system will be operated by employees hired from TESI and managed out of Aqua Pennsylvania’s Shenango Division operations office in neighboring Mercer County.
“The Treasure Lake systems are a great addition to our Pennsylvania customer base,” said Aqua America Chairman and CEO Nicholas DeBenedictis. “Their proximity to our existing operations will allow us to take advantage of economies of scale that will benefit our new Treasure Lake customers as well as our existing customers.”DeBenedictis noted that an acquisition of a water system in Virginia earlier this week offers similar benefits to both new and existing customers. Aqua America’s Virginia subsidiary purchased the British Woods Water Company in Botetcourt County, Virginia. The system provides water to about 150 people directly across the street from Aqua Virginia’s Appletree-Mountainview system. 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, Virginia, and Georgia. Aqua America is listed on the New York Stock Exchange under the ticker symbol WTR. Visit www.aquaamerica.com for more information. This release contains forward-looking statements within the meaning of The Private Securities Litigation Reform Act of 1995. These forward-looking statements are made based upon Aqua America’s current expectations and assumptions with respect to, among other things, its ability to successfully continue its growth-through-acquisition strategy. There are important factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements, including its ability to successfully integrate the acquired properties into its existing operations and rates, its ability to recover capital expenditures in rates, and other key factors that we have indicated that could adversely affect our business and financial performance and that are discussed in our Annual Report on Form 10-K for the fiscal year ended December 31, 2011, which is on file with the Securities and Exchange Commission. For further 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.