American States Water Company Announces Acquisition of Chaparral City Water Company.Business Editors SAN DIMAS, Calif.--(BUSINESS WIRE)--March 14, 2000 American States Water Company (NYSE NYSE See: New York Stock Exchange :AWR AWR Automatic Workload Repository (Oracle database) AWR Applied Wave Research (El Segundo, CA) AWR Adventist World Radio AWR Advanced Warranty Replacement AWR American Warmblood Registry ) announced today that it had entered into an agreement to acquire the common stock of Chaparral City Water Company, a privately operated water company serving approximately 10,000 customers in the town of Fountain Hills, Arizona Fountain Hills is a town in Maricopa County, Arizona, USA. It incorporated as an independent municipality in 1989, after spending most of its history as a master planned development on the far northern end of (now neighboring) Scottsdale. and portions of Scottsdale, Arizona Scottsdale (O'odham Vaṣai S-vaṣonĭ) is a city in Maricopa County, Arizona, United States, adjacent to Phoenix. Scottsdale has become internationally recognized as a premier and posh tourist destination, while maintaining its own identity and culture as " for $31.2 million, less outstanding debt. Chaparral City Water Company is owned by MCO MCO Managed care organization, see there Properties Inc., a wholly-owned subsidiary of MAXXAM Inc. (AMEX AMEX See: American Stock Exchange :MXM MXM Media Xchange Manager (VCON Inc.) MXM Mobile PCI Express Module (NVIDIA) ). This marks the first acquisition outside of California for American States Water Company. The transaction will be accounted for under purchase accounting and is anticipated to be immediately accretive to cash and accretive to earnings after the first year. The sale of Chaparral City Water Company requires notification to the Arizona Corporation Commission and other conditions customary in transactions of this type. The approval of American States' shareholders is not required. It is anticipated that the transaction will close before year end. "The acquisition of Chaparral City Water Company is the second acquisition announced by American States Water Company in the last three months and furthers our stated strategic goals of geographically expanding our operations. New customers gained through these acquisitions will enjoy the high quality of service for which American States is known and our shareholders will benefit through the added value of spreading regulatory risk through multi-state operations." said Floyd Wicks, President and Chief Executive Officer of the Company. American States Water Company is a holding company that, through Southern California Water Company, provides water service to 1 out of 30 Californians located within 75 communities throughout 10 counties in Northern, Coastal and Southern California. The Company also distributes electricity to approximately 21,000 customers in the Big Bear recreational area of California. Chaparral City Water Company provides water service to approximately 10,000 customers in the city of Fountain Hills, Arizona and portions of Scottsdale, Arizona. |
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