Crystal Water Co. Acquires Killingly Industrial Park Water System.
DANIELSON, Conn.--(BUSINESS WIRE)--Dec. 19, 2001
A Connecticut Water Service, Inc. (NASDAQ: CTWS) subsidiary (Crystal Water Company of Danielson) has acquired the Killingly Industrial Park's water system. Crystal Water has purchased the water system, which has 51 industrial and residential customers, at the approximate net asset value of $1,075,000.
The Killingly Industrial Park's water system fits the Company's expansion plans according to Marshall T. Chiaraluce, CEO and Chairman of Connecticut Water Service, Inc. Mr. Chiaraluce states, "The Industrial Park water system is physically sound, has adequate sources of supply to support residential and industrial customer growth, and is located in close proximity to Crystal Water's own water system. The acquisition accretes to earnings immediately and has significant growth potential." Crystal Water has operated the Industrial Park water system under contract to the Town since the 1970's.
The Killingly Industrial Park's water system is the second acquisition completed by Connecticut Water Service, Inc. and it's subsidiaries in 2001. In February 2001, Connecticut Water Service, Inc. completed the acquisition of the Barnstable Water Company that serves 7,200 customers or a population of 40,000 people in Hyannis, Massachusetts on Cape Cod. The two acquisitions represent a growth in the customer base of nearly 7,300 customers or a population of more than 40,000 people. Connecticut Water Service's subsidiaries serve more than 77,000 customers or a population of more than 250,000 people in Connecticut and Massachusetts.
Under contract for acquisition by Connecticut Water, and pending receipt of state funds, is the Middlebury Water System in Middlebury, Connecticut. It is anticipated that the Middlebury acquisition will be completed in early 2002, at that time the 180 customers of the Middlebury Water system will become Connecticut Water Company customers. The infrastructure of Middlebury's water system was partially financed with public grants and will be transferred to Connecticut Water when it is fully depreciated.
Also under contract for acquisition by Connecticut Water is the Unionville Water Company in Farmington, Connecticut. The Unionville Water Company has about 5,300 customers and serves a population of nearly 20,000 people. It is anticipated the Unionville acquisition will be completed in 2002.
This press release may contain certain forward-looking statements regarding the Company's results of operations and financial position. These forward-looking statements are based on current information and expectations, and are subject to risks and uncertainties which could cause the Company's actual results to differ materially from expected results.
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|Date:||Dec 19, 2001|
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