Essential Utilities’ Aqua Pennsylvania Subsidiary Selected to Continue Discussions to Purchase the Wastewater Assets of Bucks County Water and Sewer Authority

Rhea-AI Summary

Essential Utilities Inc. (NYSE: WTRG) announced that its subsidiary Aqua Pennsylvania received a one-year exclusivity agreement from the Bucks County Water and Sewer Authority (BCWSA) to advance discussions on purchasing wastewater assets. Aqua's proposal, valued at over $1.1 billion, was selected for its perceived benefits to customers and taxpayers. This decision follows a competitive bidding process and requires further approvals before finalizing the acquisition. Chairman Christopher Franklin expressed confidence in the transaction's potential advantages for Bucks County residents.

Positive

• Aqua Pennsylvania selected for exclusive negotiations to acquire wastewater assets valued at over $1.1 billion.
• BCWSA's board determined Aqua's terms were the most beneficial for customers and taxpayers.

Negative

• Final approval and definitive agreement by the Authority are still pending.
• The proposal is subject to governmental approvals and other closing conditions.

BCWSA Board finds terms of Aqua Pennsylvania’s proposal to be in the best interest of its customers, taxpayers and the county

BRYN MAWR, Pa.--(BUSINESS WIRE)-- Essential Utilities Inc. (NYSE: WTRG) announced that its Aqua Pennsylvania subsidiary was the sole company selected by the board of the Bucks County Water and Sewer Authority to advance to more definitive discussions regarding the sale of the authority’s wastewater assets. Aqua Pennsylvania formally offered more than $1.1 billion for BCWSA.

At a public meeting held earlier today, the BCWSA Board voted to grant Aqua a one-year exclusivity agreement and formally recommended Aqua as the proposed purchaser after conducting a thorough competitive bid process. Aqua’s offer was selected based on the board’s determination that Aqua’s terms were the most beneficial to its customers, taxpayers and Bucks County. The award was conditioned upon several items including a final vote by the Authority and the entering into a definitive agreement in which Aqua will buy and the Authority will sell the wastewater assets.

“We are very pleased that BCWSA chose Aqua as its potential partner for the sale of its wastewater operations. We look forward to discussing the merits of the transaction and the benefits to BCWSA customers and employees and to all Bucks County residents in the coming weeks,” said Essential Chairman and CEO Christopher Franklin.

Aqua Pennsylvania serves approximately 1.5 million people in 32 counties throughout the Commonwealth of Pennsylvania. Visit AquaAmerica.com for more information or follow Aqua on Facebook at facebook.com/MyAquaAmerica and on Twitter at @MyAquaAmerica.

About Essential

Essential is one of the largest publicly traded water, wastewater and natural gas providers in the U.S., serving approximately 5.5 million people across 10 states under the Aqua and Peoples brands. Essential is committed to excellence in proactive infrastructure investment, regulatory expertise, operational efficiency and environmental stewardship. The company recognizes the importance water and natural gas play in everyday life and is proud to deliver safe, reliable services that contribute to the quality of life in the communities it serves. For more information, visit http://www.essential.co.

This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including, among others: the company’s ability to invest capital efficiently, and its ability to enter into the asset acquisition agreement. There are important factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements including: the final approval and entry into the definitive agreement by the Authority; the receipt of governmental approvals and other closing conditions; the successful closing of the acquisition; and other factors discussed in our Annual Report on Form 10-K, which is on file with the Securities and Exchange Commission. For more information regarding risks and uncertainties associated with Essential Utilities business, please refer to Essential Utilities annual, quarterly and other SEC filings. Essential Utilities is not under any obligation — and expressly disclaims any such obligation — to update or alter its forward-looking statements whether as a result of new information, future events or otherwise.

WTRGF

View source version on businesswire.com: https://www.businesswire.com/news/home/20220712006178/en/

Brian Dingerdissen

Essential Utilities Inc.

Investor Relations

O: 610.645.1191

BJDingerdissen@Essential.co



Sarah Courtright

Communications and Marketing

Media Hotline: 1.877.325.3477

Media@Essential.co

Source: Essential Utilities Inc.

FAQ

What is the exclusive agreement between Aqua Pennsylvania and BCWSA about?

Aqua Pennsylvania has received a one-year exclusivity agreement from the Bucks County Water and Sewer Authority to negotiate the sale of wastewater assets.

How much is Aqua Pennsylvania's proposal to buy BCWSA's wastewater assets?

Aqua Pennsylvania's proposal to acquire the wastewater assets is valued at over $1.1 billion.

What conditions must be met for Aqua Pennsylvania to finalize the acquisition of BCWSA's assets?

Aqua Pennsylvania's acquisition of BCWSA's assets requires final authority approval and the completion of a definitive agreement.

Who is the CEO of Essential Utilities Inc.?

The CEO of Essential Utilities Inc. is Christopher Franklin.