Florida Water Services sells Duval County system
Florida Water Services Corp. has sold its water and wastewater system serving Duval County, Florida to the Jacksonville Electric Authority for approximately $25 million, pending regulatory approval.
DULUTH, Minn., Oct. 15, 2003 -- Florida Water Services Corp. has sold its water and wastewater system serving Duval County, Florida to the Jacksonville Electric Authority for approximately $25 million, pending regulatory approval.
Florida Water Services, an investor-owned utility system in Florida, has been in the process of selling its assets. Approximately 90 percent of Florida Water assets have been sold or are under contract to be sold for $442 million, which represents an after-tax gain to Florida Water, net of all selling and transaction costs, of about $85 million.
To date, the expected net cash proceeds after transaction costs, retirement of most Florida Water debt, and payment of income taxes are approximately $260 million. Net proceeds from the sale will be used to retire debt at ALLETE.
ALLETE's corporate headquarters are located in Duluth, Minnesota. ALLETE's holdings include ADESA, the second largest wholesale vehicle auction network in North America; AFC, a provider of independent auto dealer financing; Minnesota Power, a low-cost electric utility that serves some of the largest industrial customers in the United States; and significant real estate holdings in Florida. For more information about ALLETE, visit the company's web site at www.allete.com.
