Pennsylvania American Water, a subsidiary of American Water (AWK), has agreed to acquire the wastewater assets of Exeter Township in Berks County, in a deal worth approximately $96m.
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.
Source: Company Press Release