Connecticut Water Service expands into Massachusetts
Connecticut Water Service, Inc. has completed its first acquisition outside of Connecticut by acquiring the Barnstable Holding Company in Barnstable, Massachusetts.
CLINTON, Conn., Feb. 26, 2001 (BUSINESS WIRE) —Connecticut Water Service, Inc., a holding company that owns several regulated water companies and three unregulated service companies, has completed its first acquisition outside of Connecticut by acquiring the Barnstable Holding Company in Barnstable, Massachusetts in a transaction valued at approximately $6.5 million.
Barnstable shareholders will exchange each share of their Barnstable stock for 19.21 shares of Connecticut Water Service, Inc. stock (NASDAQ:CTWS).
Barnstable owns the Barnstable Water Company, a regulated public water utility in Hyannis, Massachusetts, and BARLACO, a separate real estate holding company owning approximately 100 acres of residential and commercial land in Barnstable. Barnstable serves a population of approximately 40,000 people through 7,200 service connections.
The acquisition is expected to become accretive to Connecticut Water's earnings within 12 months due to operating and maintenance expense savings and expansion of CTWS's successful unregulated business activities in Massachusetts.
Marshall T. Chiaraluce, CEO of Connecticut Water Service, Inc. said, "This is our largest single acquisition and will add over 10 percent growth to our existing customer base, and it gives us a platform to expand the contract services of Connecticut Water Utility Services, an unregulated subsidiary, to water utilities and municipal water districts throughout Massachusetts and Southern New England." Connecticut Water, excluding Barnstable, serves an estimated population of approximately 250,000 people through 70,000 service connections.
Under Connecticut Water ownership, Barnstable Water Company will operate as a separate water company based in Barnstable and will retain its current office and staff.
Barnstable had gross revenues of approximately $2.5 million for the calendar year 2000. Connecticut Water Service had gross revenues of $41.5 million for 2000.
Since 1999, including the acquisition of Barnstable, Connecticut Water Service has grown its customer base more than 17 percent through the acquisition of other water utilities. The other acquisitions that have significantly contributed to Connecticut Water's growth include:
* Crystal Water Company based in Danielson, Connecticut, acquired in 1999 serving an estimated population of 10,000.
* Gallup Water Service based in Danielson, Connecticut, acquired in 1999 serving an estimated population of 3,200.
Connecticut Water recently announced the acquisition of the Town of Middlebury, Connecticut's municipal water system. The Middlebury system serves an estimated population of 650.