Pennsylvania American Water Signs Agreement to Acquire Exeter Township Wastewater System
May 30 2018 - 9:00AM
Business Wire
Pennsylvania American Water, a subsidiary of American Water
(NYSE: AWK), announced today that it has signed an agreement to
acquire the wastewater assets of Exeter Township in Berks County.
The total value of the transaction is approximately $96 million.
The Exeter Township wastewater system serves nearly 9,000
customers.
Pennsylvania American Water and the township will seek approval
of the acquisition from the Pennsylvania Public Utility Commission
(PUC) and other necessary approvals from the Pennsylvania
Department of Environmental Protection. The signing of the purchase
agreement is the culmination of negotiations between Pennsylvania
American Water and Exeter officials. The township’s Board of
Supervisors voted on April 23, 2018, to accept the company’s
proposal and sign the asset purchase agreement. The township
initially issued a request for proposals in March 2017, for the
potential sale of its wastewater system.
"For many years, our company and our employees have been
providing reliable water service to about 70 percent of the
township’s wastewater customers, and we are excited for the
opportunity to provide wastewater service for the entire township,"
said Pennsylvania American Water President Jeffrey L. McIntyre. "We
are well-equipped to offer the technical expertise and financial
resources needed to ensure the system meets all the environmental
compliance challenges it will face in the future.”
McIntyre said upon closing the acquisition that “we look forward
to welcoming the township’s wastewater employees to the
Pennsylvania American Water team.” All active employees will be
offered jobs, subject to standard pre-employment screening.
Pennsylvania American Water has also committed to invest $3
million in wastewater and/or water improvements within Exeter
Township. The company will partner with the township to identify
areas where aging wastewater and water facilities can be replaced
in conjunction with street and sidewalk improvements, economic
development projects or other local infrastructure needs.
The company expects to close the transaction by the end of first
quarter 2019, pending regulatory approvals.
Pennsylvania American Water, a subsidiary of American Water, is
the largest investor-owned water utility in the state, providing
high-quality and reliable water and/or wastewater services to
approximately 2.4 million people. 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/20180530005800/en/
Pennsylvania American WaterTerry MaenzaT: 610-670-7789 ext.
1009M: 610-849-6484terry.maenza@amwater.com
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