Fort Wayne OKs Aqua America Water System Purchase in Indiana

May 16, 2014 9:08 am ET

May 16 (Bloomberg) -- Fort Wayne City Council approved the purchase of Aqua America Inc.’s Indiana water system assets in Allen County, the second-largest publicly traded water company in the U.S. said.

The council voted unanimously in favor of buying Aqua Indiana’s drinking water system assets in southwest Allen County for $67 million, including $50.1 million in addition to $16.9 million the city already paid the company in 2008.

“We believe Aqua received fair value for these assets, and we’re pleased to be able to resolve all litigation,” Aqua America Chief Executive Officer Nicholas DeBenedictis said. “This sale will provide Aqua with more than $50 million in cash that we can reinvest in water and wastewater infrastructure.’’

The agreement requires approval by the Indiana Utility Regulatory Commission. The transaction, expected to close in the fourth quarter of 2014, should add 6 to 7 cents to earnings per share in 2014, Bryn Mawr, Pennsylvania-based Aqua America said today in a statement.