Aqua America Acquires Virginia Water Systems
Published on by Water Network Research, Official research team of The Water Network in Business
The Virginia Subsidiary Acquired Lake Caroline, the Water System Assets of Caroline Water Company, for $1.1 Million
The acquired assets are Aqua America's second surface water plant in Virginia located one mile south of the company's Lake Land'Or water and wastewater facilities in Caroline County.
The acquired plant has been offline since Apr 2009. Aqua America intends to spend around $1.9 million in the next 5 years to upgrade the infrastructure, including construction of a new water treatment plant and a bulk water storage tank. Once online, the water system will be able to serve around 3,000 people in the Lake Caroline community in Ruther Glen.
Aqua America follows a systematic inorganic growth strategy to expand its operations. The company generally acquires assets having similar lines of business.
Year to date, Aqua America has completed nine regulated utility acquisitions. On Aug 22, 2014, the company's North Carolina subsidiary acquired the water system assets in Carteret County in North Carolina from Hubquarter Forestry, LLC. This acquisition added 125 more people to Aqua America's customer base.
Aqua America expects the successful integration of the acquisitions to boost its customer count by 1.5% in 2014.
This inorganic expansion strategy is currently acting as the easiest way for the water utilities to expand their operations. Apart from Aqua America, its peer American Water Works Company, Inc. (AWK) has invested substantially in strategic acquisitions.
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