Pennsylvania American Water Closes Two Water System Acquisitions at Year’s
HERSHEY, Pa. -- January 2, 2013
Pennsylvania American Water, a subsidiary of American Water (NYSE: AWK),
announced today that it closed a pair of water systems acquisitions in
northeast Pennsylvania in the final days of 2012. The combined purchase price
of the newly acquired systems is approximately $1.2 million.
In Monroe County, Pennsylvania American Water acquired the water system assets
serving the Fernwood Resort, which consists of approximately 570 timeshare
units and six commercial customers, including a hotel complex, convenience
store and restaurants built around Fernwood’s golf course. The resort is
located in Middle Smithfield Township and is in close proximity to
Pennsylvania American Water’s Saw Creek water and wastewater operations.
The company also purchased the All Seasons Water Company in Delaware Township,
Pike County, which provides water service to approximately 100 residents.
“These two transactions brought our acquisition total to six in 2012, marking
another successful year of expanding our customer footprint through
regionalization while achieving greater economies of scale,” said Pennsylvania
American Water President Kathy L. Pape.
Pape said the company is making significant capital investments to improve
water service and reliability for the newly acquired systems. For example, the
company plans to install new treatment systems for the Fernwood operation to
address existing water quality issues, as well as replace nearly 1,000 feet of
water main. Pennsylvania American Water will also install new water meters
using radio frequency technology for customers of both systems.
Pennsylvania American Water is the largest water utility in the commonwealth,
providing high-quality and reliable water and/or wastewater services to
approximately 2.2 million people. 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 approximately 7,000
dedicated professionals who provide drinking water, wastewater and other
related services to an estimated 15 million people in more than 30 states and
parts of Canada. More information can be found by visiting www.amwater.com.
This release contains forward looking statements, including, among others, our
plan to continue our long-term strategy of capital investment in our systems.
There are important factors that could cause actual results to differ
materially from those expressed or implied by such forward-looking statements
including: general economic business conditions, unfavorable weather
conditions, changes in regulations or regulatory treatment and availability
and the cost of capital. We undertake no obligation to publicly update or
revise any forward-looking statement.
Pennsylvania American Water
T: 610-670-7789 ext. 1009
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