CLINTON, Conn. — Connecticut Water Service has closed on its $19.8 million purchase of a Maine utility, company officials said Monday.
Shareholders of the Biddeford and Saco Water Co. exchanged their stock for Connecticut Water stock as part of the deal.
Dan Meaney, a spokesman for Connecticut Water, said Biddeford and Saco Water Co. shareholders are getting 3.14 shares of the Clinton-based company for each of their shares in the Maine utility.
Connecticut Water is also assuming $8.4 million of the Maine utility’s debt, Meaney said.
Biddeford and Saco Water Co. serves nearly 15,500 customers in four Maine communities. Completion of the deal means that in less than 12 months, Connecticut Water has increased its customer base by 35 percent through acquisitions in Maine.
Connecticut Water acquired The Maine Water Co., formerly known as Aqua Maine, in a deal that closed in January. The Maine Water Co. serves 16,000 customers in the communities it serves.
Connecticut Water has 90,000 customers in 55 Connecticut towns, including Bethany, Clinton, Guilford, Killingworth, Madison, Old Saybrook and Westbrook.
Eric Thornburg, Connecticut Water’s chairman, president and chief executive officer, said his company “has the financial resources to fund the infrastructure investments that are necessary to ensure that a reliable supply of high-quality water is delivered to customers in Biddeford, Saco, Old Orchard Beach and Scarborough.”
“Prior to today’s acquisition, [Biddeford and Saco Water Co.] did not have the financial strength to fund infrastructure investments at the same level as [Connecticut Water,]” Thornburg said.
Judy Wallingford, president of Maine Water, will now lead Biddeford and Saco Water Co. as well.
Maine utility regulators approved the deal Nov. 7, and the deal closed Monday.
Distributed by MCT Information Services