Aqua America Inc. on Sept. 17 announced the $276.5 million acquisition of the Delaware County, Pa., Regional Water Quality Control Authority, pending regulatory approval.
Under the transaction, Aqua America will acquire a customer base equal to 165,000 retail customers consisting of retail, commercial and industrial customers and large wholesale agreements with municipal authorities. The assets include 168 miles of combined and separate sewer mains, 14 miles of large-diameter force mains, and a 50-million gallon-per-day wastewater treatment plant that serves the western part of its service territory.
The water authority, known as DELCORA, has been sought after. In August, the Delaware County Times newspaper published a letter from American Water Works Co. Inc. President and CEO Susan Story, touting her company as a merger partner. American Water is the largest investor-owned water and sewer utility in the U.S. by customer count, and is already active in Pennsylvania. Story asked that American Water Works be permitted to participate in a request for proposals process for DELCORA.
DELCORA is under financial duress due to U.S. Environmental Protection Agency mandates to resolve combined sewer overflow problems, Aqua America said in a news release. The cost of these projects, and other capital investments, is estimated to be approximately $1.2 billion through 2041.
Aqua America said the acquisition of the Delaware County utility is the largest municipal transaction in its history. All of the Delaware County utility's employees will be retained, and all union contracts will be honored. Aqua America has seven other acquisitions of water and wastewater utilities pending and expected to close this year or in 2020.
In October 2018, Aqua America announced the acquisition of Pittsburgh-based natural gas company PNG Companies LLC for $4.275 billion, a deal expected to close this year.
