Florida Water Services Sells Deltona System for $59.5 Million.Business Editors DULUTH, Minn.--(BUSINESS WIRE)--Aug. 18, 2003 ALLETE, Inc. (NYSE NYSE See: New York Stock Exchange :ALE) announced today that its subsidiary, Florida Water Services Corporation, has agreed to sell its water and wastewater system serving Deltona, Florida Deltona is a city located in southwestern Volusia County, Florida. According to 2006 U.S. Census Bureau estimates, the city has a population of 82,788; it is the largest city in Volusia County. to the city of Deltona for $59.5 million. Florida Water Services will realize an after-tax gain of approximately $20 million and expects to close on the sale by the end of the year pending satisfaction of certain contingencies and regulatory approvals in Florida. "Deltona is one of Florida Water's larger systems," said Dave Gartzke, ALLETE Chairman, 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. . "We're pleased that we were able to reach an acceptable agreement with the city of Deltona as we continue to work to exit our water businesses." Deltona joins seven other Florida communities who have announced plans to purchase water systems that combined represent about 70 percent of Florida Water's assets. The total amount of the sale of the eight systems, including Deltona, is $356 million and represents an after-tax gain to Florida Water of about $75 million. The cash proceeds after transaction costs Transaction Costs Costs incurred when buying or selling securities. These include brokers' commissions and spreads (the difference between the price the dealer paid for a security and the price they can sell it). , retirement of Florida Water debt, and payment of income taxes are approximately $185 million, and will be used to retire debt at ALLETE. Florida Water Services continues to work with local governments interested in purchasing remaining water systems. If interested governmental entities cannot be found, the remaining systems will be sold to a private buyer. ALLETE's corporate headquarters are located in Duluth, Minnesota. ALLETE's holdings include ADESA, the second largest wholesale vehicle auction network in North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. ; AFC (1) (Application Foundation Classes) A class library from Microsoft that provides an application framework and graphics, graphical user interface (GUI) and multimedia routines for Java programmers. , the leading provider of independent auto dealer financing; Minnesota Power, a low-cost electric utility that serves some of the largest industrial customers in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. ; and significant real estate holdings in Florida. For more information about ALLETE, visit the company's Web site at www.allete.com. The statements contained in this release and statements that ALLETE may make orally in connection with this release that are not historical facts, are forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. . Actual results may differ materially from those projected in the forward-looking statements. These forward-looking statements involve risks and uncertainties and investors are directed to the risks discussed in documents filed by ALLETE with the Securities and Exchange Commission. |
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