United Water Announces Intention to Purchase AOS Operating Company
United Water has reached an agreement to acquire AOS Operating Company from United Kingdom-based Kelda Group. AOS Operating Company provides water and wastewater operations and maintenance services, largely for municipal clients. AOS Operating Company will become a wholly-owned subsidiary of United Water at the close of the transaction, which is expected by the end of June.
United Water just recently completed its acquisition of Aquarion Water Company of New York, a regulated water utility. The acquisition expanded United Water’s population served by 50,000 in Westchester County, New York, where the company now serves more than 200,000 people.
“The addition of Kelda’s contract operations business to our portfolio is in line with our strategy to grow both our regulated and contract services business both organically and by acquiring companies that are adjacent to our operations where we have a strong presence,” said United Water CEO Tony Harding. “This acquisition strengthens our solid presence in the northeastern United States and provides us with an excellent opportunity to expand our services in the New England area while strengthening our operations on the west coast, particularly in California.”
United Water provides water and wastewater services to seven million people in 20 states. The company is a subsidiary of the Suez Environment division of the Suez Group, which supplies sustainable solutions for essential environmental services (water, sanitation and waste services) to industrial and individual customers around the world.
The AOS Operating Company acquisition will add 82 water and wastewater services contracts, serving more than 650,000 people in Connecticut, Rhode Island, New Hampshire, Massachusetts, New York and California. The total annual revenues for Aquarion’s water and wastewater contract operations were in excess of $30 million in 2006.