PHOENIX, ARIZONA--(Marketwired - Apr 19, 2013) - EPCOR Water (USA) Inc. (EPCOR USA), a wholly owned subsidiary of EPCOR Utilities Inc. (EPCOR), has reached an agreement to acquire substantially all of the assets of the North Mohave Valley Corporation for approximately US$2.35 million, subject to certain adjustments and regulatory approval by the Arizona Corporation Commission.
"EPCOR is committed to growing our business in the southwestern United States, and we see opportunities to expand through the acquisition of water and wastewater systems that complement our existing operations," said Joe Gysel, President of EPCOR Water (USA) Inc. "North Mohave Valley Corporation presents an opportunity to add incremental value to our operations in northwestern Arizona, including additional water resources, and we view this as a next step in the growth of our U.S. business platform."
If approved by the Arizona Corporation Commission, North Mohave Valley Corporation will be the company's third acquisition, following the 2011 acquisition of Chaparral City Water Company and the 2012 acquisition of American Water's Arizona and New Mexico assets and operations.
Today, EPCOR USA is the largest, private regulated water utility in Arizona and New Mexico. As of December 31, 2012, EPCOR USA provides water and wastewater service to approximately 193,000 customer connections across 14 municipalities and six counties.
North Mohave Valley Corporation currently provides water service to approximately 2,000 customer connections in the Bullhead City area, a service territory that is contiguous to and surrounds a portion of EPCOR USA's Mohave district.
EPCOR USA provides water and wastewater service to more than 17,000 customer connections in the Mohave district. EPCOR USA also provides water and wastewater service for nearly 1,650 customer connections in neighboring Lake Havasu City. A regulatory decision from the Arizona Corporation Commission is expected in the first quarter of 2014.
"Serving the customers of North Mohave Valley Corporation has been our privilege, but it is now time to look at how we can bring the service that we provide to a new level in a way that benefits our customers and the water resources of the Bullhead City area," said John McCormick, President of North Mohave Valley Corporation. "We feel confident that the sale of North Mohave Valley Corporation to EPCOR USA is a positive step for our customers."
Certain information in this news release is forward-looking within the meaning of Canadian securities laws as it relates to anticipated financial performance, events or strategies. When used in this context, words such as "will", "anticipate", "believe", "plan", "intend", "target", and "expect" or similar words suggest future outcomes. The purpose of forward-looking information is to provide investors with management's assessment of future plans and possible outcomes and may not be appropriate for other purposes. Forward-looking information in this news release includes expectations regarding the timing of regulatory approval of the acquisition.
These statements are based on the assumptions and analyses made by the Company in light of its experience and perception of historical trends, current conditions and expected future developments and other factors it believes are appropriate. Readers are cautioned not to place undue reliance on forward-looking statements as actual results could differ materially from the plans, expectations, estimates or intentions expressed in the forward-looking statements. Except as required by law, EPCOR disclaims any intention and assumes no obligation to update any forward-looking statement even if new information becomes available, as a result of future events or for any other reason.
About EPCOR Water (USA) Inc.
About EPCOR Water (USA) Inc. (EPCOR USA) EPCOR USA is an indirect, wholly owned subsidiary of EPCOR Utilities Inc. Headquartered in Phoenix, Arizona, EPCOR USA's wholly owned subsidiaries build, own and operate water and wastewater treatment facilities and infrastructure in the southwestern United States.
About EPCOR Utilities Inc.
EPCOR's wholly owned subsidiaries build, own and operate electrical transmission and distribution networks, water and wastewater treatment facilities and infrastructure in Canada and the United States. EPCOR, headquartered in Edmonton, Alberta, is an Alberta Top 60 employer. EPCOR's Website is www.epcor.com.