American Water Works Company has entered into an agreement to sell its regulated New York operations to Liberty Utilities.
Susan Story, CEO of American Water, said: "This was a very difficult decision for American Water, as we have had the privilege of serving customers and communities in New York for more than 130 years.
The $608 million deal is expected to be closed in the second half of 2020. The two parties are now waiting for approval by the New York Public Service Commission.
“After a careful and comprehensive analysis, we believe it is in the best interest of our customers in New York to sell to Liberty Utilities, which already has water utility operations and will have a larger presence in New York once the transaction closes. We are committed to working together to ensure that the transition is unnoticeable to our customers and that safe and reliable water service continues throughout the transition and beyond,” adds Story.
Liberty Utilities has over 800,000 customer connections in 14 states.
“We are also pleased that our agreement with Liberty Utilities ensures that no jobs will be lost as a result of the transaction, with a commitment by Liberty Utilities to maintain existing employment terms for two years following the closing including keeping salaries and benefits comparable for our incredibly talented and hard-working New York American Water employees.”
“We are excited to expand our customer base in the great state of New York, and to bring our experience in multiple states as a water utility operator committed to excellence,” said Ian Robertson, Chief Executive Officer of Algonquin, owners of Liberty Utilities.