One of the major operators in the water and wastewater space, Aqua America Inc. WTR announced that its units in Virginia and Pennsylvania have further expanded their operations by completing acquisitions in their respective states.
Aqua Virginia purchased the assets of Captain’s Cove Utility Company in Accomack County, VA for $2.4 million. The utility, which provides water and wastewater service to the Captain’s Cove subdivision, has 977 active water customer connections and 280 active wastewater connections.
Aqua Pennsylvania acquired Robin Hood Lakes Water Company, serving Polk Township. The utility has 210 customer connections and serves approximately 600 people.
The U.S. water utility space is highly fragmented as there are a number of water utilities operating on various scales ranging from some hundreds of customers to a million. The fragmented water industry has raised concerns about whether the smaller systems are sustainable in terms of competence and adaptability.
Consolidation allows larger operators with financial strength and the ability to upgrade the systems of smaller service providers to render quality water services across all customer classes.
Another large operator in the water space, American Water Works Company, Inc. AWK, recently completed an acquisition to strengthen its existing water and waste water treatment infrastructure.
As for Aqua America, the most recent acquisition is its 16th this year and the company believes that these acquisitions will enable it to meet its customer base growth goal of 1.7–2% for 2015.
Zacks Rank
Aqua America carries a Zacks Rank #3 (Hold). A couple of better-ranked stocks in the water utility industry are Artesian Resources Corp. ARTNA and The York Water Company YORW, both carrying a Zacks Rank #2 (Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Be the first to comment