Illinois American Water Announces Agreement to Acquire Alton’s Regional Wastewater System
April 13 2018 - 2:36PM
Business Wire
Agreement Would Add Approximately 23,000
wastewater customers in Southwest Illinois
Illinois American Water, a subsidiary of American Water
(NYSE:AWK), has signed an asset purchase agreement today to acquire
Alton’s regional wastewater system. Today’s agreement follows
Wednesday night’s vote (7-1) by the Alton City Council in favor of
Illinois American Water purchasing the regional wastewater
system.
“I believe this transaction, approved by our council, is in the
best interests of our city, now and in the future,” said Alton
Mayor Brant Walker. “It allows us significant net proceeds to help
fund other city needs and priorities. It also puts our wastewater
system and its ongoing needs in professional hands with Illinois
American Water, a company that is familiar with Alton and its
residents.”
Walker added a key component of the deal is Illinois American
Water’s commitment to continued employment for current city
wastewater employees. There will be continued employment in current
roles for all existing city employees as well as training, career
advancement and professional development opportunities.
The total value of the proposed transaction is approximately
$53.8 million, subject to certain adjustments provided in the
agreement.
The Alton wastewater system serves approximately 23,000
customers, including customers in the nearby communities Bethalto
and Godfrey.
Illinois American Water has owned, operated and maintained the
water system serving Alton for the past 140 years.
“Illinois American Water appreciates the continued confidence
the Alton City Council has shown in us by accepting our proposal,”
said Karen Cooper, senior manager, Illinois American Water.
“Illinois American Water is part of the Alton community. We have
been providing water service here for more than 140 years. We are
excited about the potential of broadening our partnership with the
city to include wastewater. Alton has a proud history and tradition
and a bright future. We look forward to our continued
partnership.”
Illinois American Water and the City of Alton will seek approval
of the acquisition from the Illinois Commerce Commission. Following
approval, the deal could close in First Quarter 2019.
Cooper said Illinois American Water is committed to making
capital improvements to the infrastructure of the wastewater
system, including upgrades to the city’s wastewater treatment
facility, pump station improvements, and completion of requirements
set forth in the city’s long-term control plan included in Alton’s
National Pollution Discharge Elimination System (NPDES) permit.
Bruce Hauk, president, Illinois American Water, said the company
is committed to continued growth and economic development in the
River Bend region, which includes Alton. A recent study by the
University of Illinois said the sale of the wastewater system
assets to Illinois American Water would mean $65.8 million overall
economic impact in Alton in the first five years.
“This is an exciting acquisition for Illinois American Water and
our team of employees in Alton and throughout the state of
Illinois,” said Hauk.
Cautionary Statement Concerning Forward-Looking
Statements.
Certain statements in this press release are forward-looking
statements within the meaning of the safe harbor provisions of the
Private Securities Litigation Reform Act of 1995. Forward-looking
statements relate to, among other things, the execution of a
definitive purchase agreement; the completion of the proposed
acquisition; the ability to satisfy closing and other conditions
related to the proposed transaction, including obtaining regulatory
approvals; anticipated capital investments; and the ability to
achieve certain benefits, synergies and goals relating to the
transaction and the operations to be acquired. These statements are
based on the current expectations of management of Illinois
American Water. There are a number of risks and uncertainties that
could cause actual results to differ materially from these
forward-looking statements, including with respect to (1) obtaining
the regulatory and other approvals required for the acquisition;
(2) satisfying other conditions to the closing of the acquisition;
(3) the occurrence of the benefits and synergies expected or
predicted to occur as a result of the acquisition; (4) unexpected
costs, liabilities or delays associated with the acquisition or the
integration of the acquired business; (5) regulatory, legislative,
local or municipal actions affecting the water and wastewater
industries, which could adversely affect Illinois American Water;
and (6) other economic, business and other factors. Forward-looking
statements are not guarantees or assurances of future performance
or results, and Illinois American Water and its affiliates do not
undertake any duty to update any forward-looking statement
About Illinois American Water
Illinois American Water, a subsidiary of American Water (NYSE:
AWK), is the largest investor-owned water utility in the state,
providing high-quality and reliable water and/or wastewater
services to approximately 1.3 million people. American Water also
operates a customer service center in Alton and a quality control
and research laboratory in Belleville. With a history dating back
to 1886, American Water is the largest and most geographically
diverse U.S. publicly traded water and wastewater utility company.
The company employs more than 6,900 dedicated professionals who
provide regulated and market-based drinking water, wastewater and
other related services to an estimated 15 million people in 46
states and Ontario, Canada. American Water provides safe, clean,
affordable and reliable water services to our customers to make
sure we keep their lives flowing. For more information, visit
amwater.com and follow American Water on Twitter, Facebook and
LinkedIn.
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version on businesswire.com: https://www.businesswire.com/news/home/20180413005611/en/
Illinois American WaterTerry MackinDirector, Communications
& External Affairs618-910-7221
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