The acquisitions will be made through APUC’s subsidiary Liberty Water.
The acquisitions include Louisiana Land and Water (LLW), Noel Water, and KMB Utilities will add approximately 7,400 customer connections to the Liberty Water family.
LLW, which serves approximately 6,000 customers near Monroe, Louisiana, and KMB located in Missouri, both own and operate regulated water distribution and waste-water collection and treatment utility systems.
Noel participates solely in the regulated water distribution utility business in Missouri, and the total consideration for the three acquisitions is $8.3m.
LLW, Noel and KMB are anticipated to have net regulatory assets for rate making purposes at closing of approximately $6.5m, $0.7m and $0.3m respectively, representing a consolidated purchase price multiple of net regulatory assets of approximately 1.09x.
APUC chief executive officer Ian Robertson said these facilities, which increase Liberty Water’s customer count by approximately 10%, will be able to benefit from operation and administration synergies with our other nearby facilities in Texas and Missouri.
The acquisitions are expected to occur later this year.
