The acquisition includes the city’s water treatment plant and distribution system that serves approximately 3,200 connections
Aqua America, through its Ohio subsidiary, has agreed to acquire a water treatment plant and distribution system from the City of Campbell, Mahoning County, for $7.5m (£6.17m).
The deal is expected to close later this year, after receiving approval from the Public Utilities Commission of Ohio. The water treatment plant serves nearly 3,200 connections.
Aqua America chairman and CEO Christopher Franklin said: “This purchase will enable Aqua to bring benefits to the Campbell community by leveraging expertise in compliance, large-scale purchasing power and other efficiencies that can be realized with a larger, combined regional operation.
“Purchasing private and municipally owned systems is about more than growth. It allows us to do our part to strengthen water and wastewater infrastructure in the communities we serve, something that’s vitally important for the future.
“At the same time, proceeds from the sale of a water or wastewater system can enable municipal leaders to pursue other important initiatives in their communities.”
Aqua America plans to invest £3.54m in the Campbell water system
Aqua Ohio president Ed Kolodziej stated that the company plans to invest about $4.3m (£3.54m) in the water system to enhance water quality, reliability and regulatory and environmental standards.
Kolodziej continued saying: “I commend the City of Campbell’s mayor and council members for administering an open and transparent evaluation process.
“Campbell’s officials remained focused on making sure any resolution would offer the best solution for the community, and we look forward to serving our new customers.”
Last October, the company signed an agreement to acquire natural gas company Peoples for $4.275bn (£3.52bn). When the deal closes this year, it will add nearly 740,000 customers across Western Pennsylvania, Kentucky and West Virginia.
Aqua America made several acquisitions in the Village of Manteno, Illinois, Limerick Township, Pennsylvania, the Village of Peotone, Illinois, East Bradford Township, Pennsylvania and the Tredyffrin Township Municipal Authority’s Valley Creek Trunk Sewer System in Pennsylvania.
With Campbell, Ohio, the company now has eight pending water and wastewater acquisitions under agreement totaling nearly 22,600 customer connections. The deals are expected to be closed either this year or the next.