Global Water Resources Acquires Two Water Utilities in Pima County, Arizona
Global Water Resources (NASDAQ: GWRS) has acquired Tortolita Water Company and Lyn-Lee Water Company, adding 58 active water connections near Tucson, Arizona, to its portfolio. This acquisition, the third and fourth in Pima County this year, aims to enhance water management capabilities for the communities served. The Lyn-Lee Water Company faces operational challenges requiring infrastructure investments, which Global Water plans to address. This strategic move is part of the company's ongoing consolidation efforts in the region, where it currently operates 47,827 water connections.
- Acquisition expands active water connections to 47,827.
- Strategic consolidation in Pima County with three acquisitions in 2020.
- Global Water has resources to address operational challenges at Lyn-Lee.
- Lyn-Lee Water Company faces operational challenges requiring significant infrastructure investments.
PHOENIX, Dec. 01, 2020 (GLOBE NEWSWIRE) -- Global Water Resources, Inc. (NASDAQ: GWRS), (TSX: GWR), a pure-play water resource management company, has acquired two small water utility companies, Tortolita Water Company and Lyn-Lee Water Company. They are located near Tucson, Arizona, close to the company’s existing Red Rock Utilities.
The acquisition of these water utilities adds 58 active water connections, bringing Global Water’s total active connections to 47,827.
“We look forward to bringing our leading water resource management capabilities to these communities,” stated Global Water Resources president and CEO, Ron Fleming. “We expect all stakeholders involved to benefit from our successful approach to utility consolidation, operations and water conservation best practices.”
The Lyn-Lee Water Company has been facing certain operational challenges that will require infrastructure investments. Global Water has the resources and specialized know-how that can rectify these challenges, which are not unlike those facing many other small water utilities.
Tortolita and Lyn-Lee represent Global Water’s third and fourth acquisitions this year in Pima County following its acquisitions of Mirabell Water Company in October and Francesca Water Company in November. The company plans to make additional tuck-in acquisitions in the county next year.
“Small utility companies similar to Tortolita and Lyn-Lee are often unable to overcome operational challenges that require additional capital, especially in this post-COVID-19 world,” added Christopher Krygier, chief strategy officer for Global Water Resources. “Global Water is well positioned to acquire these small utilities, and help them overcome obstacles with the capital investment and expertise we can provide.”
About Global Water Resources
Global Water Resources, Inc. is a leading water resource management company that owns and operates 16 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 service connections, regulated revenue, housing permit projections, the development of residential and commercial properties within our service areas, 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 September 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 J. Liebman
SVP and CFO
Tel (480) 999-5104
mike.liebman@gwresources.com
Investor Relations:
Ron Both or Grant Stude
CMA Investor Relations
Tel (949) 432-7566
GWRS@cma.team
FAQ
What companies did GWRS acquire in December 2020?
How many active water connections does GWRS have after the acquisition?
What operational challenges is Lyn-Lee Water facing?
How does the acquisition impact GWRS's strategy?
