DOVER, Del., July 24, 2001 — Chesapeake Utilities Corporation has acquired the employees and customers of Intermountain Water, Inc. and Blue Springs Water as a result of the purchase of select assets of these two companies earlier today.
With this transaction, Chesapeake will advance into the water conditioning and treatment and bottled water markets in Boise, Idaho, and the surrounding communities.
The assets purchased from the two companies will be combined under a new subsidiary of Chesapeake, Sharp Water of Idaho, Inc. Former President and majority shareholder, Steven M. Wood will continue to manage the daily operations of the Idaho-based business. The remaining shareholders will have no future involvement.
"Wood has created a strong foothold in water conditioning and treatment and bottled water in the Boise, Idaho, and surrounding markets," said Mike Paice, President of Sharp Water of Idaho, Inc. "Offering a full menu of products and services, including sales, service and rental of water conditioning and treatment products and solutions, as well as bottled water, this dealership adds significant growth opportunities to the Company's Midwest cluster, which was established just last week with the purchase of select assets of EcoWater Systems of Rochester of Rochester, Minnesota, and opens the door to the West. We believe there are many growth opportunities in the Boise area and we are excited that we have secured such a solid base from which we can pursue this growth," he noted.
Chesapeake also has three other geographic clusters of dealerships. Operating in the Mid-Atlantic cluster are Sam Shannahan Well Co., Inc. dba Sharp Water (formerly Tolan Water Service) in Salisbury, Maryland, and Carroll Water Systems, Inc. in Westminster, Maryland. Serving the growing Detroit, Michigan suburban market is Eco Water Systems of Michigan, Inc., dba Douglas Water Conditioning. Several months ago, Chesapeake announced the formation of its Florida cluster with two other acquisitions, including Aquarius Systems in Fort Pierce and Absolute Water Care, Inc. in Venice.
In total, including this latest transaction, Chesapeake owns seven water conditioning and treatment subsidiaries, selling and servicing EcoWater Systems, Inc. water conditioning and treatment products, operating in four geographic clusters. Chesapeake plans to grow the number of dealerships operating within its existing clusters as well as other geographic areas, primarily through the acquisition of existing successful dealerships and through initiation of start-up operations. One means of accomplishing these objectives is through the Company's joint initiative with EcoWater Systems, Inc. to pursue growth in the water conditioning and treatment arena.
Chesapeake Utilities Corporation is a diversified utility company engaged in natural gas distribution and transmission, propane distribution and marketing, advanced information services and other related businesses. Information about Chesapeake Utilities Corporation and the Chesapeake family of businesses is available online at www.chpk.com.
