American Water Works to Acquire
Azurix North America
VOORHEES, N.J. (BUSINESS WIRE) - American Water Works (NYSE:AWK) announced today that it had entered into an agreement to acquire Azurix North America Corp.
The transaction positions American Water Works Company as a premier provider of water resource management services in North America while expanding its existing core capabilities to include a full menu of water and wastewater management services.
The acquisition strengthens American Water's existing geographical position and expands the Company's presence into the southeastern and northwestern United States and three Canadian provinces.
Azurix North America is a wholly-owned subsidiary of Azurix Corp. and provides a range of water and wastewater services, including operations and maintenance, engineering, carbon regeneration, underground infrastructure rehabilitation and residuals management.
It has annual revenues of about US$157 million and 1,050 employees and operates facilities serving an end-user population of approximately 2 million people across North America.
"Azurix North America is a strategically significant acquisition that will enable us to offer a comprehensive portfolio of quality water management services to municipal and industrial customers. The transaction is a logical step in our transition from a regulated water utility to a full service water resource manager," said J. James Barr, President and CEO of American Water.
"The combination of Azurix North America with American Water will result in a stronger water resource team that is poised to deliver best-in-class products and services throughout North America. This acquisition will strengthen our relationships with existing customers while offering a broader range of services to new customers," said Jorge Carrasco, President of American Water Services.
The acquisition, after accounting for initial transition costs, is expected to be accretive to American Water's earnings per share and cash flow in its first full year.
Goldman, Sachs & Co. acted as exclusive financial advisor to American Water.