Bridgeport-based Aquarion Co. said it has agreed to purchase Plainville’s New England Service Co., which operates four water utilities in Connecticut, Massachusetts and New Hampshire.
Shareholders of NESC, which trades on the OTC Pink Sheets, would receive 0.51208 shares of Eversource common stock for each NESC share they hold. Aquarion said the value of the transaction is $40.6 million plus approximately $10 million in assumed debt.
Based on the April 6 closing share price of Eversource and NESC, the deal implies a value of $44.90 per NESC share, a 95% premium over its April 6 closing price of $23 per share, the parties said.
The NESC-owned Valley Water Systems, which has over 6,800 customers in Plainville, Southington, and Farmington, is the largest of NESC’s regulated holdings. The others include Colonial Water Co. and Mountain Water Systems in Massachusetts, and Abenaki Water Co. in New Hampshire.
Aquarion Water Co. to acquire Plainville-based NESC, owner of utilities in three states
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Putnam Reservoir in Greenwich, Conn.Tyler Sizemore / Hearst Connecticut MediaShow MoreShow Less
Officials with Aquarion Water Co. said Friday the Bridgeport-based utility has entered into a definitive agreement to acquire New England Service Co., a Plainville firm that operates water companies in Connecticut and two other states.
The agreement has been approved by both boards of directors and calls for all NESC employees to keep their jobs. The deal will add about 10,000 customers to Aquarion’s existing customer base of 216,000, which is spread across Connecticut, Massachusetts and New Hampshire.