Aquarion Water Co. to acquire Plainville firm
Proposed merger with New England Service Co. will add about 10,000 customers
Officials with Aquarion Water Co. said Friday the Bridgeport-based utility has entered into a definitive agreement to acquire New England Service Co., a Plainville firm that operates water companies in Connecticut and two other states.
The agreement has been approved by both boards of directors and calls for all NESC employees to keep their jobs. The deal will add about 10,000 customers to Aquarion’s existing customer base of 216,000, which is spread across Connecticut, Massachusetts and New Hampshire.
Donald Morrissey, president of Aquarion, said the merger “will create longterm benefits for customers, employees, and the communities we serve.”
“We will make investments in these water systems focused on reliability and water quality and deliver a superior customer experience,” Morrissey said in a statement.
Aquarion serves customers in 52 communities in Connecticut. NESC’s Connecticut utility is Valley Water Systems, which was established in 1884 and serves over 6,800 customers in Plainville, Southington, and Farmington.
The terms of the agreement with the New England Service Co. call for Aquarion to acquire all outstanding shares of NESC, making that company a wholly-owned subsidiary. Under the agreement, the transaction will be executed through an exchange of stock, with stockholders of NESC receiving roughly 0.51 shares of Aquarion’s corporate parent, Eversource Energy.
Over the last ten years, Aquarion has integrated over 70 water systems into its operations.
The exchange ratio called for in the agreement implies a $44.90 per share price for the NESC stock based on an $87.68 closing price of Eversource Energy common shares on April 6.
NESC owns the Colonial Water Co., a utility that provides water to about 1,550 customers in Dover and Plymouth, Mass. as well as Mountain Water Systems, a which provides water to over 500 customers in Sheffield, Mass. NESC also owns the Abenaki Water Co., a combination of five utilities that provide water and sewer services to about 700 customers in Belmont, Bow, Gilford and Bretton Woods, N.H.
The deal is expected to close by the end of this year and will require approval by the stockholders of NESC. The transaction is also subject to the approval of regulatory authorities in three states, including Connecticut’s Public Utilities Regulatory Authority.