Aquarion Company has entered an agreement to acquire The Torrington Water Company (TWC), a water service provider from Connecticut.
Aquarion is a water distribution company and holding company based in Bridgeport, Conn., providing regulated water service to customers in Conn., Mass., and N.H. TWC is a water distribution company based in Torrington, Connecticut providing regulated water service to Connecticut customers in Torrington and to portions of Burlington, Harwinton, Litchfield, and New Hartford.
Aquarion will acquire all outstanding shares of TWC, and TWC will become a wholly-owned subsidiary of the company.
Under the agreement, the acquisition will be executed through a stock-for-stock transaction that is structured to be a tax-free reorganization. The agreement provides that the stockholders of TWC will receive common shares of Aquarion's parent, Eversource Energy, in exchange for their TWC common stock.
TWC has assets of approximately $65 million. The merger will add approximately 10,100 customers to Aquarion's base of 226,000 customers. TWC's service area will complement Aquarion's existing footprint in the northwestern part of the Connecticut. Under the agreement, all TWC employees will be retained.
"Both Aquarion and TWC can trace their local water service roots back to the 1800s. This merger will ensure this history lives on and continues to create long-term benefits for customers, employees, and the communities we serve," said Donald Morrissey, President of Aquarion Water Company. "We will make the needed investments in this water system to ensure continued reliability and water quality for decades to come. We also welcome TWC's dedicated employees to the Aquarion team."
Over the last ten years, Aquarion has integrated over 84 water systems into its operations.
The transaction is still subject to the approval various other stakeholders. The parties plan to file all required regulatory applications over the coming months with an anticipated closing by the end of 2022.
