Unitil to acquire Aquarion Companies for $100M

Unitil (UTL) announced that it has entered into a definitive agreement to acquire Aquarion Water Company of Massachusetts Inc., Aquarion Water Company of New Hampshire, Inc., and Abenaki Water from the Aquarion Water Authority for $100M including the assumption of approximately $30M of debt, subject to certain closing conditions, customary purchase price adjustments, and purchase price adjustments for certain capital expenditures. AWA is a quasi-public corporation and political subdivision of the State of Connecticut, and a standalone, newly created water authority. Upon closing of the transaction, the Aquarion Companies will become wholly owned subsidiaries of Unitil. The transaction is subject to customary closing conditions as well as other closing conditions, including approval by the Massachusetts Department of Public Utilities, the New Hampshire Public Utilities Commission, and the Maine Public Utilities Commission and the closing of the sale of the ultimate parent company of the Aquarion Companies to AWA, which was announced earlier this year and is expected to close in late 2025, at which time this transaction is also expected to close. The water systems of the Aquarion Companies include approximately 330 miles of water distribution mains and serve approximately 12,000 customers in seven communities in Massachusetts, and 11,000 customers in eight communities in New Hampshire. The Aquarion Companies’ rate base is estimated to be approximately $78M as of December 31, 2024, and is forecasted to be approximately $87M as of December 31. The transaction is expected to be earnings accretive over the long-term, supporting Unitil’s long-term earnings per share growth of 5% to 7%. Unitil has obtained committed debt financing from Scotiabank to fund the purchase price.