Aqua America Inc.
) continues to follow a steady inorganic growth strategy to
expand its existing operations. The company's two subsidiaries -
Aqua Illinois and Aqua Virginia - recently acquired four water
systems and two wastewater systems.
Aqua Illinois invested approximately $0.6 million to acquire the
Village of Sun River Terrace wastewater system, the water and
wastewater systems of Woodlawn Utilities, the Sheridan Grove
water system, the Nordic Woods water system. The company has been
offering water services to customers in the region. Post
acquisition, Aqua Illinois will directly provide water services
to the Village of Sun River Terrace wastewater system's
In another transaction, Aqua Virginia acquired the water systems
of the St. Tammany Landing Property Owners Association, Inc. for
These acquisitions will enable Aqua America to increase its
customer base besides experiencing operational synergy. In
addition, the inclusion of wastewater systems of the Village of
Sun River Terrace will help the company to reap benefits from its
existing facilities in the region while reducing competition.
It is evident from past records that Aqua America is continuously
acquiring new assets besides improving existing set ups. Year to
date, the company has completed acquisitions of 15 water and
wastewater systems, including the current transactions. On Nov 7,
2013, Aqua America's subsidiary Aqua Virginia acquired the
Blacksburg Country Club wastewater system and treatment plant
with a deal value of $0.14 million.
Apart from Aqua America, another water utility provider
American Water Works Company, Inc.
) is also following the same strategy. American Water's unit
Virginia American Water acquired Dale Service Corporation for
We appreciate Aqua America's continuous effort towards strategic
acquisitions and upgrading the existing infrastructure. During
the first nine months of 2013, the company invested $216.1
million, under its capital investment program, to upgrade the
existing infrastructure distribution networks and replace older
pipes, mainly in Pennsylvania.
These initiatives will enable Aqua America to provide
uninterrupted water to its customers while strengthening system
competence and improving reliability as well as public safety.
Aqua America currently has a Zacks Rank # 3 (Hold). Other water
utilities that are worth considering include
Middlesex Water Co.
) with a Zacks Rank #1 (Strong Buy), and
Connecticut Water Service, Inc.
) with a Zacks Rank #2 (Buy).
AMER WATER WORK (AWK): Free Stock Analysis
CONN WATER SVC (CTWS): Free Stock Analysis
MIDDLESEX WATER (MSEX): Free Stock Analysis
AQUA AMER INC (WTR): Free Stock Analysis
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