Aqua America announced that the Fort Wayne City Council has unanimously voted to approve the purchase of Aqua Indiana’s drinking water system assets in southwest Allen County, Indiana, for $67 million, which comprises $50.1 million in addition to $16.9 million the city already paid Aqua for its water and wastewater system assets in the northern part of Fort Wayne in a contested decision in 2008. The agreement requires approval by the Indiana Utility Regulatory Commission, and the transaction is expected to close in the fourth quarter of 2014.

“We believe Aqua received fair value for these assets, and we’re pleased to be able to resolve all litigation,” said Aqua America Chairman and CEO Nicholas DeBenedictis. “We look forward to working with the city to enhance economic development in Fort Wayne in the future.

“This sale will provide Aqua with more than $50 million in cash that we can reinvest in water and wastewater infrastructure,” said DeBenedictis. “We are optimistic that the sale can close in the fourth quarter and would add 6 to 7 cents to earnings per share in 2014.”

The Aqua Indiana water system in southwest Allen County currently serves about 12,600 homes and businesses. Aqua Indiana will continue to provide wastewater service to its current customers in southwest Allen County and will treat in excess of 1.5 million gallons per day of wastewater flow from the city’s sewer system in western and southwestern Allen County; this flow size is the equivalent of gaining an estimated 10,000 sewer customers. The city and Aqua Indiana will cooperate on wastewater master planning and the establishment of efficient service boundaries.

This release contains forward-looking statements within the meaning of The Private Securities Litigation Reform Act of 1995, including, among others, the ability to obtain approval by the respective regulatory bodies and to close on the transaction. There are important factors that could cause actual results to differ materially from those expressed by such forward-looking statements, including housing and customer growth trends; general economic trends; and other factors discussed in our Annual Report on Form 10-K, which is on file with the Securities and Exchange Commission. For more 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.

WTRF

Copyright Business Wire 2010