Aqua America is the largest investor-owned water utility in Ohio, according to a news release.
The purchase, for $101 million in cash plus assumed debt of $11 million, yielded Aqua America eight additional water systems and one wastewater system in Ohio, which serve about 50,730 water and about 6,550 wastewater connections. The systems serve parts of nine counties primarily in central and northeast Ohio, including Marion.
The acquisition increases Aqua Ohio’s customer base by about 66 percent and adds about $95 million in rate base. The transaction is expected to improve operating efficiency at Aqua Ohio as it spreads fixed costs over 57,280 more customers in that state, which should have a positive impact on future rates for customers, the company said.
In a separate agreement, Aqua America sold its seven New York water systems, which serve about 50,520 customers, to American Water’s New York subsidiary for about $39 million in cash plus assumed debt of $23 million. The sale of Aqua America’s New York operations will conclude its operations in that state.
The purchase prices for both the Ohio and New York transactions are subject to post-closing adjustments.
This is the latest of five transactions Aqua America has completed in a year to consolidate its customer base in fewer states. Since May 2011, Aqua America has sold its Missouri operations to American Water; purchased American Water’s Texas operations; and sold its Maine operations to Connecticut Water.
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