Global Water Resources Acquires Mirabell Water Company
Global Water Resources (NASDAQ: GWRS) has acquired Mirabell Water Co., adding over 60 active connections in Tucson, Arizona. This strategic move supports the company's consolidation efforts in a fragmented local utility market. The Arizona Corporation Commission facilitated the swift closure of the transaction, promoting utility consolidation under its recent reforms. CEO Ron Fleming emphasized the benefits of improved management and modernization for Mirabell’s customers. This acquisition marks GWRS’s first since 2018, reflecting a renewed focus on growth opportunities.
- Acquisition of Mirabell Water expands active connections by over 60, enhancing market presence.
- Transaction streamlined by Arizona Corporation Commission, promoting effective consolidation.
- Strategic focus on utility management and modernization could enhance service quality and customer satisfaction.
- None.
PHOENIX, Oct. 30, 2020 (GLOBE NEWSWIRE) -- Global Water Resources, Inc. (NASDAQ: GWRS), (TSX: GWR), a pure-play water resource management company, has acquired Mirabell Water Co., a small water utility located in the southwest area of Tucson, Arizona.
Mirabell adds more than 60 active water connections in close proximity to Global Water’s existing service area in Tucson.
“We welcome Mirabell and its customers to our growing family of utilities,” stated Ron Fleming, Global Water’s chief executive officer. “Like many other small utilities throughout the state, Mirabell can benefit from our approach to utility consolidation and management, including necessary upgrades and automation. This presents capital investment opportunities for the benefit of our Mirabell customers and all stakeholders.”
The Arizona Corporation Commission (ACC) enabled the transaction to close on an expedited basis in accordance with their water policy reform package intended to promote consolidation and lessen regulatory impediments for such transactions, in addition to other reforms.
Mirabell represents the company’s first acquisition since 2018 and reflects its renewed focus on these efforts, as there are significant opportunities along with the need for consolidation in Arizona. The ACC website lists more than 300 investor-owned water and wastewater utilities in the state.
“We appreciate ACC’s forward-thinking policy guidelines that support and incentivize consolidation of the highly-fragmented water utility industry in Arizona,” added Fleming. “Their support helps to set the stage for our additional planned ‘tuck-in’ acquisitions and the community benefits they can deliver under our stewardship.”
About Global Water Resources
Global Water Resources, Inc. is a leading water resource management company that owns and operates 13 utilities which provide water, wastewater, and recycled water services. The company’s service areas are located primarily in growth corridors around metropolitan Phoenix. Global Water recycles nearly 1 billion gallons of water annually.
The company has been recognized for its highly-effective implementation of Total Water Management (TWM). TWM is an integrated approach to managing the entire water cycle by owning and operating water, wastewater and recycled water utilities within the same geographic area in order to maximize the beneficial use of recycled water. TWM includes additional smart water management programs such as remote metering infrastructure and other advanced technologies, rate designs, and incentives that result in real conservation. TWM helps protect water supplies in water-scarce areas experiencing population growth. To learn more, visit www.gwresources.com.
Cautionary Note Regarding Forward-Looking Statements
This press release includes certain forward-looking statements which reflect the company's expectations regarding future events. The forward-looking statements involve a number of assumptions, risks, uncertainties, and other factors that could cause actual results to differ materially from those contained in the forward-looking statements. These forward-looking statements include, but are not limited to, statements concerning future net income growth, our strategy, acquisition plans, our dividend policy, the timing and likelihood of approval of the certificate of convenience and necessity for the Inland Port project and the anticipated benefits, trends relating to population growth, active connections, regulated revenue, housing permit projections, the anticipated impacts from the COVID-19 pandemic on the company, including to our business operations, results of operations, cash flows, and financial position, and our future responses to the COVID-19 pandemic, and other statements that are not historical facts as well as statements identified by words such as "expects", "anticipates", "intends", "plans", "believes", "seeks", "estimates", or the negative of these terms, or other words of similar meaning. These statements are based on our current beliefs or expectations and are inherently subject to a number of risks, uncertainties, and assumptions, most of which are difficult to predict and many of which are beyond our control. Actual results may differ materially from these expectations due to changes in political, economic, business, market, regulatory, and other factors, including the duration and severity of the COVID-19 pandemic and the actions to contain the virus or treat its impact. Accordingly, investors are cautioned not to place undue reliance on any forward-looking statements, which reflect management’s views as of the date hereof. Factors that may affect future results are disclosed under the headings “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our filings with the Securities and Exchange Commission (the "SEC"), which are available at the SEC's website at www.sec.gov. This includes, but is not limited to, our Annual Report on Form 10-K for the year ended December 31, 2019, our Quarterly Report on Form 10-Q for the quarter ended June 30, 2020, and subsequent filings with the SEC. We undertake no obligation to publicly update any forward-looking statement, except as required by law, whether as a result of new information, future developments or otherwise.
Company Contact:
Michael Liebman
CFO and SVP
Tel (480) 999-5104
mike.liebman@gwresources.com
Investor Relations Contact:
Ron Both or Grant Stude
CMA Investor Relations
Tel (949) 432-7566
Email contact
FAQ
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