American Water Announces Completion Of Sale Of Regulated Operations In Arizona And New Mexico To EPCOR USA
Financial close follows regulatory approval in both states, smooth transition for customers expected
American Water Works Company, Inc. the largest publicly traded U.S. water and wastewater utility company, recently announced the financial close of its sale of regulated operations in Arizona and New Mexico to EPCOR USA. The agreement of sale was announced on January 24, 2011, at a purchase price of $470M. The pre-tax gain on sale, prior to allocation of a portion of the goodwill from the parent company, is approximately $50M. After allocation of the goodwill, the pre-tax gain and its impact on net income is expected to be minimal. The completion of the transaction was contingent upon regulatory approval in Arizona and New Mexico, both of which have been received.
"Today is the conclusion of months of work on the part of many of our employees," said Jeff Sterba, CEO of American Water. "This transaction allows American Water to continue to focus on areas where we can best serve customers and meet our objectives, and it allows our employees in Arizona and New Mexico new opportunities with EPCOR. I am pleased to celebrate this success and the conclusion of this process."
American Water serves approximately 174,000 customers in Arizona and New Mexico. American Water and EPCOR USA are committed to working together to ensure a smooth and seamless transition for customers as well as employees. Approximately 220 American Water employees based in Arizona and New Mexico will become EPCOR employees.
About American Water Works Company, Inc.
Founded in 1886, American Water is the largest publicly traded U.S. water and wastewater utility company. With headquarters in Voorhees, N.J., the company employs more than 7,000 dedicated professionals who provide drinking water, wastewater and other related services to approximately 15 million people in more than 30 states as well as parts of Canada. For more information, visit www.amwater.com.
SOURCE: American Water Works Company, Inc.