Aqua America closes four acquisitions in three states
Pa.--(BUSINESS WIRE)--Nov. 8, 2005--Aqua America, Inc.
Aqua Illinois purchased the water system assets of the Village of Philo in Champaign County, representing another municipal acquisition for Aqua America. It is the company's second municipal acquisition in Illinois in the past two years, following its purchase of the Grant Park water system serving 1,500 residents. The Philo system supplies water to approximately 1,300 residents. The Illinois Commerce Commission approved the acquisition after extensive review.
Aqua Illinois plans to invest in a new water tank to provide much-needed storage capacity, replace aging and undersized pipe, and install new services in the Philo community. These capital improvements are estimated at more than $1.2 million over the rest of the decade.
"We're pleased to add Philo to our regional network as a result of meaningful discussions with municipal officials going back to 2002," said Aqua America Chairman and Chief Executive Officer Nicholas DeBenedictis. "We're able to efficiently tuck the Philo system into our existing operations in Vermilion County, Illinois, to capture economies of scale and control costs, while providing customers with quality, reliable service."
In addition, Aqua Pennsylvania, Inc. purchased the water systems assets of the Garbush Water Company, serving approximately 250 residents in Jackson Township, Luzerne County.
In North Carolina,
Aqua subsidiaries acquired the water system assets of the
Northwoods residential development near Chapel Hill, Orange
County, serving approximately 250 residents, and the water
system assets of Community Water Works in Statesville, Iredell
County, serving approximately 250 residents in the Lincoln
Estates and River Hill Heights subdivisions. Aqua North Carolina
plans to invest nearly $130,000 in the Community Water Works
systems for new water main and meters, in addition to a well
station, a storage tank and connection
These purchases are in addition to the company's acquisition of 24 water and wastewater systems through the first three quarters of 2005. "The newest acquisitions are further evidence of the steady momentum behind our growth-through-acquisition strategy," said DeBenedictis. "They also offer more opportunity to grow earnings through achieving a regulated return on the capital investments we'll make to improve and properly maintain these systems."
Aqua America, Inc. is the largest U.S.-based publicly-traded water utility, serving more than 2.5 million residents in Pennsylvania, Ohio, North Carolina, Illinois, Texas, Florida, New Jersey, Indiana, Virginia, Maine, Missouri, New York, and South Carolina. Aqua America is listed on both the New York and Philadelphia Stock Exchanges under the ticker symbol WTR.
This release contains
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995, including, among
others, projected investment in the acquired systems, the
assimilation of the acquired systems, economies of scale from
the acquired systems, the pace of the Company's
growth-through-acquisition strategy, the potential for
additional customer growth from acquired operations, and the
ability to earn a return on investments in the