Aqua America Inc. (NYSE: WTR) reported today that it completed the purchase of seven water and wastewater utility systems in the first six months of the year, including three in Pennsylvania, three in North Carolina and one in Virginia.
Aqua Pennsylvania acquired both 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. Aqua Pennsylvania also acquired the water distribution system assets that serve 500 people in the Concord Park section of Bensalem Township from Bucks County Water and Sewer Authority for $399,000. The Concord Park distribution system is surrounded by Aqua Pennsylvania’s service territory.
The company’s North Carolina subsidiary recently acquired the water system assets of the Shaw Hills Subdivision in Wake County, which serves about 80 residents. The utility also purchased the wastewater assets of North State Utilities, which consists of three subdivisions with a total of the 117 connections in Wake County. Finally, Aqua North Carolina purchased the water system assets of Knob Creek, a subdivision with about 600 residents in the town of Pisgah Forest, Transylvania County for $40,000. All three systems were designated as “troubled” by state regulators. Aqua expects to invest approximately $500,000 in their restoration.
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.
“The acquisitions we’ve completed in the first half of the year indicate that our growth-through-acquisition strategy is continuing to fill in our footprint in key growth areas,” said Aqua America Chairman and CEO Nicholas DeBenedictis. “The TESI acquisition in Pennsylvania and the Northwood Utilities acquisition in North Carolina are particularly rewarding as we have previous history with both companies,which led them to their decision to allow us to purchase their assets,” explained DeBenedictis. “Aqua Pennsylvania purchased TESI’s Beech Mountain water and wastewater systems in May 2012, and Aqua North Carolina had provided sewer and billing services to other subdivisions owned by North State Utilities. In both cases, we see our most recent acquisitions in these areas as an affirmation of reliability and quality of service we provide to our customers.”