CLINTON, Conn., Feb. 26, 2002 -- Connecticut Water Service, Inc., and the Unionville Water Company of Farmington, Conn. have signed a merger agreement to combine their respective water utility operations.
Under the agreement, Connecticut Water Service (a Clinton, Connecticut based holding company that owns several regulated water utilities in Connecticut and Massachusetts) will exchange Connecticut Water Service common stock for Unionville stock. This stock-for-stock transaction is valued at approximately $6.3 million.
Upon completion of the transaction, Connecticut Water Service will operate Unionville as a wholly-owned subsidiary under its holding company structure. Unionville Water Company serves over 5,400 customers or a population of more than 14,000 people and produces annual revenues of approximately $2.4 million. Signing the Definitive Merger Agreement is a major step towards completing the merger, which was announced December 3, 2001 when the two companies signed a letter of intent to combine.
Marshall T. Chiaraluce, Chairman and CEO of Connecticut Water Service, Inc., said that he is pleased with the progress of the merger. Chiaraluce said, "We look forward to having the Unionville Water customers as part of our growing company. We are currently preparing an application to be filed with the Connecticut Department of Public Utility Control for approval of the merger and plan to file it shortly."
In addition to regulatory approvals, completion of the merger is also subject approval of Unionville's stockholders and the satisfaction of several other conditions.
Connecticut Water Service, Inc., through its four subsidiary regulated water companies, serves over 78,000 water customers or a population of about 276,000 people in 40 towns in Connecticut and Massachusetts.