Largest Wastewater Acquisition for American Water in 10 Years
Expands Virginia American Water Into Wastewater Market
VOORHEES, N.J.--(BUSINESS WIRE)--Nov. 14, 2013--
Water Works Company, Inc. (NYSE: AWK), the largest publicly traded
U.S. water and wastewater utility company, announced today that its
Virginia American Water subsidiary has completed its acquisition of Dale
Service Corporation, a wastewater utility company in Northern Virginia.
The total value of the transaction is approximately $27.7 million. With
approximately 20,000 customers (a population of about 50,000 people),
this is the largest wastewater acquisition in more than 10 years for
American Water, and marks the entry of Virginia
American Water, which is the largest investor-owned water utility in
Virginia, into the wastewater services market.
The service area of the newly acquired entity overlaps Virginia American
Water’s existing water service area in Prince William County.
“This acquisition is a great example of how we grow our business in
areas that make sense for the company and its customers,” said Jeff
Sterba, president and CEO of American Water. “By expanding into the
wastewater market in our existing water service footprint, we create
greater efficiency and economies of scale, which benefits our customers.”
As part of the purchase, which was approved by the Virginia State
Corporation Commission, Virginia American Water’s new subsidiary will
operate two wastewater treatment plants with a combined capacity of 9.2
million gallons per day. Since 1966, Virginia American Water has been
providing water services to most of the Dale Service Corporation
“We are pleased to be able to provide wastewater service to Dale Service
Corporation’s customers, the majority of whom already know Virginia
American Water as their provider of high-quality water service,” said
Virginia American Water President William R. Walsh. “We are equally
pleased to bring on the 24 employees of Dale Service, who will now
represent Virginia American Water in providing wastewater service that
reflects our commitment to environmental stewardship, customer service
and corporate responsibility.”
Virginia American Water, a subsidiary of American
Water, is the largest investor-owned water utility in the state,
providing high-quality and reliable water and wastewater services to
more than 300,000 people. Founded in 1886, American Water is the largest
publicly traded U.S. water and wastewater utility company. With
headquarters in Voorhees, N.J., the company employs more than
approximately 6,700 dedicated professionals who provide drinking water,
wastewater and other related services to an estimated 14 million people
in more than 30 states and parts of Canada. More information can be
found by visiting www.amwater.com.
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Source: American Water Works Company, Inc.
American Water Works Company, Inc.
President, Corporate Communications
Vice President, Investor Relations