Essential Utilities' Aqua Pennsylvania Subsidiary Acquires Shenandoah Water System For $12M
Portfolio Pulse from Happy Mohamed
Essential Utilities Inc. (NYSE:WTRG) has announced that its subsidiary, Aqua Pennsylvania, has completed the acquisition of the Municipal Authority of the Borough of Shenandoah (MABS) water system for $12 million. MABS, which serves around 3,000 customers, has been dealing with frequent outages and main leaks, with water loss estimated at 60%. Essential plans to invest over $23 million in MABS over the next 10 years, including $10 million to replace water mains. This acquisition is part of Essential's strategy to grow by investing in infrastructure that delivers clean, safe, and reliable natural resources.
July 27, 2023 | 3:08 pm
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POSITIVE IMPACT
Essential Utilities' acquisition of MABS water system for $12 million and its plan to invest over $23 million in the next 10 years could potentially improve the company's infrastructure and service reliability, leading to increased customer satisfaction and potentially higher revenues in the long term.
The acquisition of MABS water system and the planned investment in its infrastructure could potentially improve Essential Utilities' service reliability and efficiency, which could lead to increased customer satisfaction and potentially higher revenues in the long term. However, the impact of this acquisition and investment on the company's financial performance will depend on the successful implementation of the planned infrastructure improvements and the company's ability to manage the associated costs.
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