EPCOR Utilities Inc.

EPCOR Utilities Inc.

March 24, 2015 07:00 ET

EPCOR Water (USA) Enters Agreement to Acquire Willow Valley Water Company From Global Water

PHOENIX, ARIZONA--(Marketwired - March 24, 2015) - EPCOR Water (USA) Inc. (EPCOR USA), a wholly owned subsidiary of EPCOR Utilities Inc. (EPCOR) and parent company of EPCOR Water Arizona Inc., has reached an agreement with GWR Global Water Resources Corp. (GWRC) to acquire the assets and operations of the Willow Valley Water Company (Willow Valley) for approximately US$2.5 million, subject to certain adjustments and regulatory approval by the Arizona Corporation Commission (ACC).

"The addition of Willow Valley is a natural step in the expansion of our U.S. business platform and continues to build on our regional footprint in northwestern Arizona," said Joe Gysel, President of EPCOR USA. "Willow Valley presents an opportunity to complement our operations in northwestern Arizona, and we believe this change in ownership will benefit the customers of Willow Valley over the long term."

If approved by the Arizona Corporation Commission, Willow Valley will be the company's sixth acquisition since entering the United States. In 2011, the company acquired Chaparral City Water Company, followed by the 2012 acquisition of American Water's Arizona and New Mexico assets and operations. In 2013, EPCOR USA acquired North Mohave Valley Corporation in Arizona and Thunder Mountain Water Company in New Mexico, as well as the existing agreements and master-planning responsibilities to provide wastewater and recycled water services to a 7,000-acre development corridor in Glendale, Arizona.

Today, EPCOR USA is the largest, private regulated water utility in Arizona and New Mexico, providing water and wastewater service to approximately 200,000 customer connections across 22 communities and seven counties.

Willow Valley currently provides water service to approximately 1,600 customer connections in the Bullhead City area, a service territory approximately 10 miles south of EPCOR USA's Mohave and North Mohave districts.

With the acquisition of Willow Valley, EPCOR USA will provide water service to approximately 17,500 customer connections in the Bullhead City area. EPCOR USA also provides wastewater service to approximately 1,500 connections in the Bullhead City area, and water service for more than 1,700 customer connections in neighboring Lake Havasu City. A regulatory decision from the Arizona Corporation Commission is expected in late 2015.

Forward-looking information

Certain information in this news release is forward-looking within the meaning of Canadian securities laws as it relates to anticipated financial performance, events or strategies. When used in this context, words such as "will", "anticipate", "believe", "plan", "intend", "target" and "expect" or similar words suggest future outcomes. The purpose of forward-looking information is to provide investors with management's assessment of future plans and possible outcomes and may not be appropriate for other purposes. Forward-looking information in this news release includes expectations regarding the timing of regulatory approval of the acquisition.

These statements are based on the assumptions and analyses made by the Company in light of its experience and perception of historical trends, current conditions and expected future developments and other factors it believes are appropriate. Readers are cautioned not to place undue reliance on forward-looking statements as actual results could differ materially from the plans, expectations, estimates or intentions expressed in the forward-looking statements. Except as required by law, EPCOR disclaims any intention and assumes no obligation to update any forward-looking statement even if new information becomes available, as a result of future events or for any other reason.

About EPCOR Water (USA) Inc.

EPCOR USA is an indirect, wholly owned subsidiary of EPCOR Utilities Inc. Headquartered in Phoenix, Arizona, EPCOR USA's wholly owned subsidiaries build, own and operate water and wastewater treatment facilities and infrastructure in the southwestern United States. EPCOR USA is the parent company of EPCOR Water Arizona Inc.

About EPCOR Utilities Inc.

EPCOR's wholly owned subsidiaries build, own and operate electrical transmission and distribution networks, water and wastewater treatment facilities and infrastructure in Canada and the United States. The Company's subsidiaries also provide electricity and water services and products to residential and commercial customers. EPCOR, headquartered in Edmonton, is an Alberta top 65 employer. EPCOR's website address is www.epcor.com.

Contact Information

  • EPCOR Water (USA) Inc.
    Rebecca Stenholm
    Director, Public & Government Affairs
    O: 623.445.2424 or C: 602.390.5662
    rstenholm@epcor.com