Southwest Water Buying Utilities for $63M
Southwest Water Co. has signed an agreement to acquire water utilities and wastewater utilities from Tecon Water Holdings LP for approximately $63 million.
Announced today, the purchase agreement includes 87 water utilities and 12 wastewater utilities in Texas and Oklahoma.
Southwest Water said the purchase price will be paid through debt assumption and cash. The company said it expects the deal to close in the third quarter.
The company said it expects to retain all 100 employees currently working on the utilities.
Tecon utilities serve approximately 21,000 water and 4,000 wastewater connections in Texas and 250 water and wastewater connections in Oklahoma.
Southwest Water's utility group currently owns approximately 5,000 water and wastewater connections in Texas, according to Southwest Water Co. Chairman and CEO Anton Garnier.
California-based Southwest Water Co. provides water production, treatment and distribution, wastewater collection and treatment, and public works services. The company serves more than 2 million people in 35 states.