Connecticut Water (CTWS) To Acquire Avon Water For $36.6M
Zacks Investment Research | Oct 12, 2016 10:13PM ET
Water and wastewater service provider Connecticut Water Service Inc. (NASDAQ:CTWS) announced that it has entered into a definite agreement to acquire Avon Water Company for a total consideration of $36.6 million.
Avon Water caters to nearly 4,800 customers near Connecticut Water’s existing operations in Avon and Farmington. This acquisition will help Connecticut Water increase its presence in the area.
Details of the Deal
The agreement includes the payment of a stock consideration of nearly $26.2 million or 80% and a cash payment of $6.2 million or 20% for a total payment of $32.4 million to shareholders. Connecticut Water will also assume nearly $4.2 million of Avon Water’s long-term debt.
The transaction is subject to approval from Avon Water shareholders and regulatory nod from the Connecticut Public Utilities Regulatory Authority (“PURA”) and the Maine Public Utilities Commission (“MPUC”). The parties plan to file applications with both the PURA and the MPUC in the fourth quarter of 2016, with the deal anticipated to close by Apr 2017.
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