(By Balaseshan) Connecticut Water Service Inc. (NASDAQ: CTWS) said it has closed the acquisition of the Biddeford and Saco Water Co. (BSWC) for total enterprise value of about $19.8 million.
As called for under the previously announced agreement, the acquisition was executed through a stock-for-stock merger transaction valued at about $11.4 million. Holders of BSWC common stock receive CTWS common shares in a tax-free exchange. In addition, Connecticut Water will assume about $8.4 million in debt of Biddeford and Saco Water.
BSWC serves nearly 15,500 customers, or a population of 50,000 people, in 4 communities in the state of Maine. Judy Wallingford, president of Maine Water, will now lead BSWC as well.
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In less than 12 months, CTWS has grown its customer base by 35 percent through acquisitions in the state of Maine. In January 2012, CTWS acquired The Maine Water Co., formerly known as Aqua Maine Inc., which serves 16,000 customers, or 48,000 people, across the state of Maine, and less than 12 months later it has acquired BSWC.
Overall CTWS, through Maine Water and BSWC, serves more than 31,000 customers, or a population of nearly 100,000 people, in Maine, and 90,000 customers, or 300,000 people, in Connecticut through The Connecticut Water Co.
According to Eric Thornburg, CTWS's Chairman, President and Chief Executive Officer, Biddeford and Saco Water will benefit from being a part of New England's fastest growing water utility company.
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Thornburg thanked Jerry Mansfield, the retiring president of Biddeford and Saco Water, for his efforts that contributed to a smooth transition for customers and employees with the completion of this transaction less than five months after it was announced.
CTWS and BSWC had announced on July 19 that the companies had reached an agreement for BSWC to merge into CTWS. The MPUC had approved the acquisition on November 7, and the closing was completed on December 10.
CTWS is trading up 0.64% at $31.34 on Monday. The stock has been trading between $26.15 and $32.84 for the past 52 weeks.