American Water Works Company, Inc. (NYSE:AWK) President and CEO J. James Barr announced today that the Company has agreed to acquire from United Water Resources Inc. (NYSE:UWR) several water utilities in Missouri, Indiana, Illinois and Virginia for approximately $49 million in cash."This transaction adds approximately 35,000 customers primarily in states where just last month we acquired several very large water systems," said Barr. "It is a natural fit for us and reflects the growth potential we anticipated in the Midwest." said Barr.
On June 25, 1999, American Water Works Company announced the completion of the acquisition of National Enterprises Inc. (NEI), a holding company whose water utilities provide water service to approximately 1.5 million people in Missouri, Indiana, Illinois and New York.
The water utilities to be purchased in this latest transaction provide water service to approximately 108,000 people in Jefferson City, the capital of Missouri; West Layfayette, Warsaw, Winchester and Mooresville, IN; Lincoln, IL; and several communities located east of the Rappahannock River, VA, close to Fredericksburg, VA.
"This is a perfect illustration," continued Barr, "of the value that can be derived from consolidation. The combination of the water utilities we are acquiring in this transaction with those we already have will enhance the ability to provide customers with the service they expect at a reasonable price."
It is anticipated that the transaction will be completed later this year following regulatory approvals in the four states, termination of the waiting period under Federal antitrust laws and completion of other requirements.
American Water Works Company is the largest and most geographically diverse investor-owned water utility business in the U.S. The Company's utility subsidiaries and affiliates now serve approximately 10 million people in 23 states. The Company remains committed to continued growth and is involved in a number of industry consolidation and privatization initiatives including water and wastewater system acquisition, contract operation and public/private partnerships.
This release may contain certain forward looking statements involving known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward looking statements. These factors include, among others, the following: general economic and business conditions; competition; success of operating initiatives, advertising and promotional efforts; existence of adverse publicity or litigation; changes in business strategy or plans; quality of management; availability, terms and development of capital; business abilities and judgment of personnel; changes in, or the failure to comply with governmental regulations; and Year 2000 issues.
