Utility Operator Connecticut Water Service to Buy Avon Water for USD 32.4m.
M2 EQUITYBITES-October 20, 2016-Utility Operator Connecticut Water Service to Buy Avon Water for USD 32.4m
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20 October 2016 - Connecticut-based water company Avon Water Company has agreed to join utility operator Connecticut Water Service, Inc. (NASDAQ: CTWS), the company said.
The agreement provides for the payment of stock consideration valued at approximately USD 26.2m and a cash payment of USD 6.2m for a total payment to shareholders of USD 32.4m.
Holders of Avon Water company common stock will receive 80% of the transaction consideration in the form of shares of CTWS common stock in a tax-free exchange.
The transaction reflects a total enterprise value of approximately USD 36.6m, with the USD 32.4m paid to shareholders and the assumption by Connecticut Water of approximately USD 4.2m in long-term debt of Avon Water Co.
Connecticut Water is a parent holding company based in Clinton, Connecticut which conducts its regulated water operations in Connecticut and Maine through its operating subsidiaries, The Connecticut Water Co and The Maine Water Co.
Avon Water Company serves about 4,800 customers in the Farmington Valley communities of Avon, Farmington, and Simsbury, and is located near Connecticut Water's existing operations in Avon and Farmington.
The transaction will require an approval vote by the shareholders of Avon Water Co and approval by each of the Connecticut Public Utilities Regulatory Authority and the Maine Public Utilities Commission.
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|Publication:||M2 EquityBites (EQB)|
|Date:||Oct 20, 2016|
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