Artesian Wastewater Management, Inc. Announces Closing on Its Acquisition of Tidewater Environmental Services, Inc.

Rhea-AI Summary

Artesian Resources Corporation (NASDAQ: ARTNA) announced the acquisition of Tidewater Environmental Services, Inc. for $6.4 million. This purchase adds 3,600 wastewater customers, 7 facilities, and 13,000 acres of franchise territory in Sussex County, Delaware. The transaction aims to enhance operational efficiencies and environmental sustainability in wastewater management. Artesian's subsidiary, AWMI, has over two decades of experience and has invested in technological upgrades to improve service quality and environmental protection. The acquisition is expected to create significant synergies for future growth.

Positive

• Acquisition of Tidewater Environmental Services adds 3,600 customers and operational synergies.
• Investment in technology and infrastructure aimed at sustainable wastewater management.
• Increases Artesian's service capability in rapidly growing Sussex County.

Negative

• None.

NEWARK, Del., Jan. 14, 2022 (GLOBE NEWSWIRE) -- Artesian Resources Corporation (Artesian) (NASDAQ: ARTNA) today announced that its wholly-owned subsidiary, Artesian Wastewater Management, Inc. (AWMI), closed on its $6.4 million purchase of all of the stock of Tidewater Environmental Services, Inc. (TESI), a Delaware-based regulated wastewater utility.

The acquisition of TESI adds approximately 3,600 wastewater customers, 7 wastewater facilities, and 13,000 acres of exclusive franchise territory to AWMI’s systems in Sussex County, Delaware. “This transaction is in the best long-term interest of the TESI customers and our shareholders. Artesian is committed to serving its new and existing customers with integrity and reliability and in a manner that respects the environment and preserves the water cycle,” said Dian C. Taylor, Chair and CEO of Artesian.

AWMI utilizes spray irrigation techniques to recycle treated effluent onto agricultural land, where it recharges and replenishes aquifers and provides water for crops. This method of recycling wastewater is a proven way of improving the quality of local groundwater while providing beneficial nutrients to help plants grow, preserving agricultural open space and the local water cycle. “We have invested millions in technological and infrastructure upgrades to ensure our processes are environmentally sustainable, cost-effective, safe and responsible. We share with Delaware’s residents a deep appreciation and understanding of our state’s critical habitats and natural resources,” said Dian Taylor.

AWMI has provided wastewater services in Delaware for over two decades, disposing over 1.3 billion gallons of wastewater from homes and businesses throughout the state at six different facilities during 2021. “Our acquisition of TESI will allow AWMI to obtain further operational synergies and regionalization of systems providing wastewater service in Sussex County, Delaware. That includes further optimization of our Sussex Regional Recharge Facility near Milton, which is well equipped to serve local businesses and rapidly growing communities in the area. I am confident that our operations will play a critical role in creating lasting solutions for wastewater management in an environmentally responsible way,” said David Spacht, President of Artesian Wastewater Management, Inc.

Artesian will welcome its new TESI customers with information sessions and welcome packets.

ABOUT ARTESIAN WASTEWATER MANAGEMENT, INC.
Artesian Wastewater Management, Inc., a wholly-owned regulated subsidiary of Artesian Resources Corporation, owns wastewater collection and treatment infrastructure. Artesian Resources and its family of utilities has been providing superior service in Delaware for over 115 years. Artesian Wastewater Management, Inc., began providing wastewater service to customers in 1998, designing and operating two wastewater treatment facilities for the Town of Middletown. Artesian Wastewater Management, Inc., and its new subsidiary, Tidewater Environmental Services, Inc., provide wastewater services to nearly 7,000 customers in Delaware as regulated public wastewater service companies. Artesian Wastewater Management, Inc., and its new subsidiary, treat, process, and dispose of over 1.43 billion gallons of wastewater annually from homes and businesses throughout the state at thirteen different facilities.

Contact:
David Spacht
Artesian Wastewater Management, Inc.
(302) 453-6900
DSpacht@artesianwater.com

FAQ

What is Artesian's recent acquisition involving ARTNA?

Artesian recently acquired Tidewater Environmental Services for $6.4 million, adding significant operational capacity.

How many customers did Artesian gain from the acquisition of TESI?

Artesian acquired approximately 3,600 new wastewater customers from Tidewater Environmental Services.

What are the expected benefits of Artesian's acquisition of TESI?

The acquisition is expected to provide operational synergies, enhance service capabilities, and support sustainable wastewater management.

How will Artesian manage the integration of Tidewater Environmental Services?

Artesian plans to hold information sessions and provide welcome packets to new customers during the integration.