(By Balaseshan) Water and wastewater service provider Aqua America Inc. (NYSE:WTR) said its Virginia unit has acquired the water system assets of Fox Run Water Co. Inc. and Moseley-Nash Enterprises Inc. for about $400,000.
The 26 water systems serve about 3,500 people and businesses in several counties primarily surrounding Lake Gaston near the North Carolina border. Aqua Virginia Inc.'s Rockville, Virginia division will manage the new systems.
The acquisition is the latest for the company, which has completed more than 200 acquisitions and growth ventures over the last decade.
Aqua Virginia plans to spend about $1.4 million on environmental and capital improvements over the next five years including disinfection and treatment equipment for all water sources; filters to clear up discoloration, such as iron, where needed; and new wells and pipes to provide adequate water supply and pressure.
Aqua Virginia also intends to install new radio-frequency meters, which can be read remotely.
"Aqua Virginia has the necessary expertise to upgrade and improve pipes, wells, and disinfection systems, and we have the willingness and resources to provide the funds up front," said Nicholas DeBenedictis, Chief Executive of Aqua America.
Aqua America anticipates completing the acquisition of 12 Fox Run water systems in North Carolina later this year. Aqua America continues to focus its utility operations in states that have a positive regulatory and business climate.
This allows the company to continue to make the capital investments necessary to deliver quality water and reliable service to customers, while providing the opportunity to earn an adequate return on that investment for shareholders.
WTR is trading up 0.23% at $25.61 on Friday. The stock has been trading between $20.16 and $26.93 for the past 52 weeks.