United Water Completes Acquisition Of AOS Operating Company

Harrington Park, NJ — United Water, one of the nation's largest water service companies, has announced that it has acquired AOS Operating Company from United Kingdom-based Kelda Group for $6.55 million. AOS Operating Company provides water and wastewater operations and maintenance services, largely for municipal clients in New England and California. With the completion of the transaction, AOS Operating Company is now a wholly-owned subsidiary of United Water.

"United Water possesses a strong reputation in the water industry as a national company with significant regional roots and the acquisition of AOS Operating Company strengthens our presence in the northeast and on the west coast," said United Water CEO Tony Harding. "This transaction is in line with our managed growth goal to increase both the size and breadth of our regulated and contract services through acquisitions and organic growth."

AOS Operating Company, which has 180 employees, adds 82 water and wastewater services contracts, serving more than 650,000 people in Connecticut, Rhode Island, New Hampshire, Massachusetts, New York and California, to United Water's contract services portfolio. The total annual revenues for AOS Operating Company's water and wastewater contract operations were in excess of $30 million in 2006.

Harding noted that as part of its proximity growth strategy, United Water recently acquired Aquarion Water Company of New York in May. This regulated water utility serves 50,000 people in Westchester County, New York, adjacent to United Water's operation in New Rochelle and 10 other Westchester communities.

United Water now provides water and wastewater services to 7.7 million people in 21 states. The company is a subsidiary of the Suez Environment division of the Suez Group, which supplies sustainable solutions for essential environmental services (water, sanitation and waste services) to industrial and individual customers around the world.

United Water is a key component in the Suez strategy to expand its position in North America. "Our growth needs the support of our parent company and we are pleased that they have provided the funding necessary for us to grow our business," Harding said. "It shows the confidence they have in our ability to provide value to our customers and also to our shareholder."

SOURCE: United Water