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Pennsylvania American Water Acquires Steelton Borough Authority Water for USD 21.75m
Friday 11 October 2019

11 October 2019 - Pennsylvania, US-based Pennsylvania American Water has acquired the water assets of the Pennsylvania-based Steelton Borough Authority in Dauphin County for USD 21.75m, the company said.
The sale of the water system is expected to allow the borough to eliminate its existing water debt, build up budget reserves, and invest in capital projects.
All seven of Steelton's employees, represented by AFSCME District Council 90, are now employees of Pennsylvania American Water.
As approved by the Pennsylvania Public Utility Commission, the company has adopted Steelton's existing water rates, which will now be billed monthly. The company's rates and rules of service are regulated by the PUC and are posted on the company's website.
This sale was executed under Pennsylvania's Act 12 statute, which allows municipalities to sell water and wastewater systems for a price based on the fair market value of the facilities.
Pennsylvania American Water, a subsidiary of American Water (NYSE: AWK), is the largest investor-owned water utility in the state, providing high-quality and reliable water and/or wastewater services to approximately 2.4m people.
Details
Date Published: 11/10/2019
Target: Steelton Borough Authority in Dauphin County
Country: USA
Deal Size: 21.75m (USD)
Sector: Utilities
Type: Corporate acquisition
Financing: Cash
Status: Closed
Vendor:
Buyer: Pennsylvania American Water
Comment:


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