BRYN MAWR, Pa.--(BUSINESS WIRE)--Jul. 2, 2018--
Aqua America announced today that its Pennsylvania subsidiary has signed
an asset purchase agreement with Cheltenham Township to purchase its
wastewater system, which serves approximately 10,500 connections in
Montgomery County, for $50.25 million. The agreement must be approved by
the Pennsylvania Public Utility Commission.
The transaction will be Aqua Pennsylvania’s fourth acquisition
application referred to the Pennsylvania PUC since Act 12, commonly
referred to as fair market value legislation, was enacted last year.
Aqua Pennsylvania has asset purchase agreements with the 2,100-customer
New Garden Township wastewater system in Chester County and the
5,400-customer Limerick Township wastewater system in Montgomery County.
The company also has an agreement, signed in December 2017, with East
Bradford Township in Chester County to purchase its 1,200-customer
wastewater collection system. Aqua already provides water service to
East Bradford, as it does with Cheltenham.
These four systems, including Cheltenham, total more than 19,000
wastewater connections and would nearly double Aqua Pennsylvania’s
current 22,000-customer wastewater operation.
The new law encourages a consolidation of the fragmented industry for
the benefit of customers, the environment, and local governments. This
transaction will benefit customers by leveraging compliance expertise,
purchasing power gained through economies of scale and operational
efficiencies to ultimately benefit service to our customers at
“We are pleased with the momentum we are gaining to reach agreements
with municipal systems,” said Aqua America Chairman and CEO Christopher
Franklin. “Act 12 is having its intended impact, allowing municipalities
to be compensated for the fair value of their water and wastewater
assets and enabling utility professionals to bring expertise to systems
Aqua Pennsylvania President Marc Lucca says his team is ready to work
with the Cheltenham community on making needed system improvements.
“As with our pending agreements with New Garden, East Bradford and
Limerick, the Aqua Pennsylvania team is looking forward to assuming
Cheltenham’s sewer utility responsibilities so the township can direct
its attention and capital to other priorities,” said Lucca. “We are
anxious to begin the work necessary to help the township meet the
requirements of an outstanding Pennsylvania Department of Environmental
Protection consent order, specifically related to inflow and
infiltration issues there.”
In total, Aqua has plans to spend nearly $50 million over the next 10
years to improve Cheltenham’s wastewater system.
Aqua America is one of the largest U.S.-based, publicly traded water
utilities and serves nearly 3 million people in Pennsylvania, Ohio,
North Carolina, Illinois, Texas, New Jersey, Indiana and Virginia. Aqua
America is listed on the New York Stock Exchange under the ticker symbol
WTR. Visit AquaAmerica.com
for more information.
This release contains forward-looking statements within the meaning of
the Private Securities Litigation Reform Act of 1995 including, among
others: the company’s ability to successfully close the acquisition of
the wastewater systems noted in this release. 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, the successful integration of the
customers and the facilities, the success of the company’s growth
efforts including its ability to utilize Act 12, 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.
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Source: Aqua America