American Water Works Company Inks Largest Water Utility Acquisition in U.S.VOORHEES, N.J.--(BUSINESS WIRE)--Feb. 12, 1999--American Water Works Company, Inc. (NYSE NYSE See: New York Stock Exchange :AWK (Aho Weinberger Kernighan) A Unix programming utility developed in 1977 by Alfred Aho, Peter Weinberger and Brian Kernighan. Due to its unique pattern-matching syntax, awk is often used in data retrieval and data transformation. ) President and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. J. James Barr announced today that the definitive agreement to acquire National Enterprises, Inc. (NEI NEI National Eye Institute (NIH) NEI Nuclear Energy Institute NEI National Emission Inventory NEI Not Enough Information NEI Netherlands East Indies NEI Nuevos Estados Independientes ) has been signed. The transaction is valued at $700 million and is the largest water utility acquisition in the United States. American Water Works Company, Inc. will now pursue the requisite regulatory approvals and expects the transaction to close in the third quarter of 1999. The transaction will be accomplished through a tax-free exchange tax-free exchange An exchange of assets between taxpayers in which any gain or loss is not recognized in the period during which the exchange takes place. Rather, taxpayers are required to adjust the basis of assets exchanged. of 14,937,000 shares of American Water Works Company common stock valued at $475 million, for all of the outstanding capital stock of NEI. NEI is the parent company of Continental Water Company, which in turn owns: St. Louis County St. Louis County is the name of multiple counties in the United States:
New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of . NEI also has investments in the telecommunications industry. For the 12 months ending September 30, 1998, NEI generated net income of $18.8 million on revenues of $180 with an operating margin of 26.3%. American Water Works Company completed 22 acquisitions in 1998 and added over 55,000 customers served by its utility subsidiaries. The Company has an additional 23 signed acquisition agreements, including the NEI transaction, awaiting regulatory approvals. Upon completion, these 23 acquisitions will add another 513,000 customers (1.7 million people) served by the Company's utility subsidiaries. American Water Works Company is the largest and most geographically diverse investor-owned water utility business in the U.S. The Company, through its 23 utility subsidiaries, serves more than 7 million people in over 870 communities in 22 states. The Company remains committed to continued growth and is involved in a number of industry consolidation and privatization initiatives including water and wastewater system acquisition, contract operation and public/private partnerships. |
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