BRYN MAWR, Pa.--(BUSINESS WIRE)--Nov. 5, 2018--
Aqua America Inc. (NYSE: WTR) announced today its Pennsylvania
subsidiary has signed an agreement with East Norriton Township,
Montgomery County to acquire its wastewater assets, serving roughly
4,950 wastewater connections, for $21 million. The agreement falls under
Pennsylvania’s Act 12 fair market value legislation.
Act 12 encourages consolidation in a fragmented water and wastewater
industry, allowing resources to be shared among a larger service area,
ultimately benefiting utility customers, according to Aqua America
Chairman and CEO Christopher Franklin.
“Act 12 has enabled water utilities like Aqua and municipal systems like
East Norriton to enter into agreements that benefit customers by
ensuring professionally run, reliable service into the future,” said
Franklin. “The legislation also provides municipalities with a fair
market price for their assets, which can be used to address other
important community priorities.”
Aqua Pennsylvania President Marc Lucca said he is looking forward to
working with the township and residents in East Norriton.
“The decision to sell water and wastewater assets is an important one
for municipal leaders,” said Lucca. “We look forward to serving this
Aqua Pennsylvania has three other fair market value asset purchase
agreements in place: New Garden and East Bradford townships in Chester
County with 2,100 and 1,200 customer connections, respectively; and
Cheltenham Township, Montgomery County with 10,500 customer connections.
In addition to these three fair market value agreements, Aqua
Pennsylvania has an asset purchase agreement with the Borough of
Phoenixville, Chester County that would yield another 556 water
connections outside its municipal boundary. Collectively, when closed,
these five agreements would allow the company to welcome roughly 19,300
additional customer connections.
Aqua Pennsylvania completed the acquisition of the Limerick Township,
Montgomery County wastewater system in July 2018 using Act 12 fair
market value legislation, adding 5,400 customer connections.
Aqua America’s Illinois subsidiary completed acquisitions of the Village
of Manteno’s wastewater assets July 2, and the Village of Peotone
wastewater system on Oct. 1 and employing similar Illinois legislation,
collectively adding more than 6,800 new customer connections and
bringing Aqua America to its 1 million customer-connection milestone.
In terms of the company’s growth efforts in other regulated utilities,
on Oct. 23, Aqua America announced it will acquire Pittsburgh-based
natural gas company Peoples for $4.275 billion, creating a partnership
that can have a more significant impact on improving infrastructure
reliability, quality of life and economic prosperity in the areas it
will serve. When this acquisition closes, expected in mid-2019, Aqua
will add 740,000 customers in Western Pennsylvania, Kentucky and West
Virginia to its family of companies.
Aqua America is one of the largest U.S.-based, publicly traded water
utilities and serves about 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: that the implementation of Act 12 allows resources to be shared
to the benefit of utility customers and that the Aqua America and
Peoples transaction will have a more significant impact on improving
infrastructure reliability, quality of life, and economic prosperity in
the areas the Company will serve following the closing of the
transaction.. There are important factors that could cause actual
results to differ materially from those expressed or implied by such
forward-looking statements including: the company’s ability to close the
company’s and Peoples transaction, the company’s ability to close the
company’s and Peoples transaction with reasonable conditions; general
economic business conditions; the company's ability to fund the Company
and Peoples transaction; the company’s ability to fund capital growth;
housing and customer growth trends; changes in regulations or regulatory
treatment; availability and access to capital; the cost of capital;
disruptions in the credit markets; the success of growth initiatives;
and other factors discussed in our Annual Report on Form 10-K and our
Quarterly Report on Form 10-Q, which is filed 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 Inc.
Communications and Marketing