Connecticut Water Service (CTWS) has completed the acquisition of The Avon Water Company (AWC) for $34m in the US.
AWC has around 4800 water consumers in the Connecticut state communities of Avon, Farmington and Simsbury.
According to CTWS, Avon will retain its name, office, present workforce and will continue to serve its local customers. AWC president Bob Wesneski will continue in his role.
CTWS said that AWC merger will also not affect the price and services for customers of any of its sister companies at Connecticut Water, Heritage Village Water, and Maine Water.
CTWS completed the transaction through a stock-for-stock exchange where shareholders of AWC got common stock of CTWS of about $27.9m in value, in a tax-free exchange and a cash payment of $6.1m. The total amount paid to the shareholders was $34m.
CTWS’s chairman, president and CEO Eric W. Thornburg stated that AWC will operate as a subsidiary of CTWS, which is among the nation’s fastest growing water utility companies.
Thornburg said: “Customers will benefit by being part of a larger, regional company, which has a size and presence that provides for operational efficiencies, purchasing power and other economies of scale.
“CTWS subsidiaries, including The Connecticut Water Company (Connecticut Water), The Heritage Village Water Company (Heritage Village Water), and The Maine Water Company (Maine Water) have long histories of delivering world-class satisfaction to customers and being good stewards of the natural resources entrusted to us and we are eager to demonstrate our commitment to AWC customers.”
The acquisition received approval from the Connecticut Public Utilities Regulatory Authority in this April and the closing was effective from July 1, this year.