The transaction, which will expand Missouri American Water’s presence in Missouri by approximately 10,000 people and will conclude Aqua America’s operations in that state, is subject to approval by the Missouri Public Service Commission.
Missouri American Water’s Jefferson City, Warrensburg and Joplin service districts will manage operations for its new water and wastewater customers in Cole, Callaway, Pettis, Benton, Christian, Taney, Stone, Barry and Morgan counties.
On the other hand, American Water’s Texas subsidiary Texas American Water has entered into a separate agreement to sell its regulated 51 water and five wastewater systems serving nearly 16,000 people in the greater Houston metropolitan area in Texas to Aqua America for approximately $6m.
The acquisitions, which are expected to close in the second half of 2011, will strengthen both companies’ operations in their respective states, creating better economies of scale and providing additional opportunities for both companies to continue providing local customer service.
