Artesian Water Company, Inc. announces acquisition of the Delaware City Water System

Rhea-AI Summary

On August 3, 2020, Artesian Water Company, a subsidiary of Artesian Resources Corporation (NASDAQ: ARTNA), acquired the water system of Delaware City, serving almost 2,000 residents. This move follows a 17-year partnership where Artesian managed the city's water operations. The acquisition includes a $2.4 million investment to upgrade the system, including new water meters and improved treatment efficiency. Artesian aims to enhance water pressure and fire protection through interconnecting with the Fort DuPont system. This strategic acquisition marks Artesian's seventh in three years, supporting regional growth and development.

Positive

• Acquisition of Delaware City's water system enhances service delivery.
• Investment of over $2.4 million for system upgrades and efficiency.
• Integration with Fort DuPont system improves reliability and pressure.
• Strengthened partnership after 17 years of operational management.
• Supports regional growth with planned 600-unit residential community in Fort DuPont.

Negative

• None.

NEWARK, Del., Aug. 03, 2020 (GLOBE NEWSWIRE) -- Artesian Water Company, Inc., a subsidiary of Artesian Resources Corporation (NASDAQ: ARTNA), purchased the water system of Delaware City in New Castle County, Delaware, which serves a population of nearly 2,000, on August 3, 2020.  This acquisition is the culmination of a long-standing relationship between Artesian and Delaware City. 

Artesian has actively operated Delaware City’s water system on a contract basis for 17 years.  Under these contracts, Artesian has been responsible for operating the water treatment plants, maintaining plant equipment, making distribution system repairs, providing 24/7 emergency dispatch, and handling billing and collection services.  Along with open communication, this strong collaboration will allow the transition of the acquisition to be seamless for customers.

Artesian has been providing high quality water service in Delaware for 115 years.  This acquisition will be Artesian’s 7^th over the past three years, including the Slaughter Beach Water Company, High Point, Cantwell, Odessa, Historic Fort DuPont, and most recently Frankford water systems.

“We are proud that Delaware City chose Artesian to provide water service to its residents,” said Dian C. Taylor, Chair, President and CEO of Artesian.  “We have forged a strong partnership with Delaware City over the past 17 years and will be making significant investments to ensure the residents of Delaware City receive high quality, reliable water service,” said Taylor.

As part of this acquisition, Artesian will invest over $2.4 million in enhancing Delaware City’s water system.  The investment will include upgrading water meters to new technology, replacing aging water main and services, and installing more efficient pumps and treatment.  Additionally, Artesian will interconnect the Delaware City water system with the neighboring Fort DuPont water system, which was acquired by Artesian in 2017.  Connecting these neighboring systems will provide improved water pressure for residents of Delaware City, improve fire protection flows, and ensure multiple sources of ground water supply for enhanced reliability. 

The Historic Fort DuPont area is currently being redeveloped and revitalized.  The 325-acre area is planned to be a 600-unit residential waterfront community, with many anticipated retailers and businesses.  “The economic development in Fort DuPont, and the enhanced reliability of water supply and fire protection, will benefit the entire Delaware City area and further enable its future growth,” said Taylor.

About Artesian Resources
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, with offices in Newark and Milton, and has been providing water service since 1905.  Artesian supplies 8.3 billion gallons of water per year through 1,331 miles of water main to approximately a third of all Delaware residents.

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, planned investments in plant.  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: general economic business conditions, the successful integration of the customers and the facilities, 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 the Artesian Water Company acquisition of Delaware City?

The acquisition allows Artesian to expand its service area while enhancing water quality and reliability for Delaware City residents.

How much is Artesian investing in the Delaware City water system?

Artesian will invest over $2.4 million to upgrade and enhance the water system.

What improvements will Artesian make to the Delaware City water system?

Improvements include upgrading water meters, replacing aging infrastructure, and enhancing water treatment facilities.

How does this acquisition affect fire protection in Delaware City?

The interconnection with the Fort DuPont system will improve fire protection flows in Delaware City.

What is the expected impact of this acquisition on Artesian's growth?

This acquisition is expected to contribute to Artesian's strategic growth, supporting regional development in Delaware.