Artesian Wastewater Management, Inc. to Acquire Tidewater Environmental Services, Inc.

Rhea-AI Summary

Artesian Resources Corporation (NASDAQ: ARTNA) announced the acquisition of Tidewater Environmental Services, Inc. (TESI) for $6.4 million. The deal is pending approval from the Delaware Public Service Commission and is expected to close by December 31, 2021. TESI, a regulated wastewater utility, serves 3,600 customers in Sussex County, Delaware. This strategic acquisition aims to enhance service offerings and align with long-term interests for customers and shareholders.

Positive

• Acquisition of TESI expands customer base by approximately 3,600 retail wastewater customers.
• Strategic move expected to enhance wastewater service offerings in Delaware.

Negative

• Transaction pending regulatory approval introduces uncertainty regarding completion.
• Potential financial burden of $6.4 million in cash and other considerations.

NEWARK, Del., Aug. 30, 2021 (GLOBE NEWSWIRE) -- Artesian Resources Corporation (NASDAQ: ARTNA) today announced that its wholly-owned subsidiary, Artesian Wastewater Management, Inc., has agreed to acquire Tidewater Environmental Services, Inc. (TESI), a Delaware based regulated wastewater utility owned by Middlesex Water Company (Middlesex), for $6.4 million in cash and other consideration. The transaction is subject to approval by the Delaware Public Service Commission and other customary closing conditions, and is expected to be finalized prior to December 31, 2021.

Artesian and Middlesex have entered into a definitive agreement whereby Artesian Wastewater Management, Inc. will purchase all of the stock of TESI, which serves approximately 3,600 retail wastewater customers in Sussex County, Delaware. Both Companies have jointly concluded that this transaction is in the best long-term interest of the customers and the shareholders of their respective organizations.

ABOUT ARTESIAN RESOURCES CORPORATION
Artesian Resources Corporation operates as a holding company of wholly-owned subsidiaries offering water and wastewater services, and related services, on the Delmarva Peninsula. Artesian Water Company, the principal subsidiary, is the oldest and largest regulated water utility on the Delmarva Peninsula and has been providing water service since 1905. Artesian supplies 8.3 billion gallons of water per year through 1,368 miles of water main to nearly a third of Delaware residents. Artesian Wastewater Management, Inc. is a wholly-owned regulated subsidiary that owns wastewater collection and treatment infrastructure and provides wastewater services to over 3,000 customers in Delaware as a regulated public wastewater service company. Artesian began providing wastewater service to customers in 1998, designing and operating two wastewater treatment facilities for the Town of Middletown. Artesian currently treats, processes, and disposes of over 1.3 billion gallons of wastewater annually from homes and business throughout the state at six different facilities.

Forward Looking Statements
This release contains forward looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 regarding, among other things, our growth strategy, including expectations regarding the impact of our acquisitions and the continued growth in our business and the number of customers served. These statements involve risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such forward-looking statements including: changes in weather, changes in our contractual obligations, changes in government policies, the timing and results of our rate requests, failure to receive regulatory approval, changes in economic and market conditions generally and other matters discussed in our filings with the Securities and Exchange Commission. While the Company may elect to update forward-looking statements, we specifically disclaim any obligation to do so and you should not rely on any forward-looking statement as representation of the Company’s views as of any date subsequent to the date of this release.

Contact:   
Virginia Eisenbrey
Communications
(302) 453-6900
veisenbrey@artesianwater.com

FAQ

What is the significance of Artesian's acquisition of Tidewater Environmental Services, Inc.?

The acquisition aims to enhance Artesian's wastewater services and expand its customer base in Delaware.

How much did Artesian pay for Tidewater Environmental Services?

Artesian paid $6.4 million for the acquisition of Tidewater Environmental Services.

When is the acquisition of Tidewater Environmental Services expected to be finalized?

The acquisition is expected to be finalized before December 31, 2021.

What customer base does Tidewater Environmental Services serve?

Tidewater Environmental Services serves approximately 3,600 retail wastewater customers in Sussex County, Delaware.

What regulatory approval is needed for the acquisition?

The acquisition requires approval from the Delaware Public Service Commission.