Global Water Resources Signs Definitive Asset Purchase Agreements for Two Water Utilities
26 February 2021 - 12:31AM
Global Water Resources, Inc. (NASDAQ: GWRS), (TSX: GWR), a
pure-play water resource management company, has entered into
definitive agreements to acquire two small water utility companies,
Twin Hawks Utility, Inc. and Rincon Water Company. Twin Hawks is
located in Pinal County and Rincon is in Pima County. The
acquisitions will add approximately 93 water connections.
“We welcome Twin Hawks and Rincon to our expanding portfolio of
water utilities in Arizona,” stated Global Water Resources
president and CEO, Ron Fleming. “We plan to implement our
industry-leading approach to utility consolidation and operations,
which promotes investment, compliance and safety, and better water
usage practices for the benefit of all stakeholders.”
Twin Hawks is located near an existing Global Water operational
hub, facilitating an easy integration into Global Water’s platform.
Twin Hawks provides water service to an airpark in Pinal County.
Over 90% of Global Water’s current connections are in Pinal
County.
Twin Hawks and Rincon represents the company’s fifth and sixth
acquisition since 2018. They reflect the company’s renewed focus on
acquisitions, given the significant opportunities and the benefits
of consolidation for Arizona. The Arizona Corporation Commission
(ACC) website lists more than 300 investor-owned water and
wastewater utilities operating in the state.
Rincon continues Global Water’s expansion in Pima County, the
same county where Global Water acquired four water utilities last
year. Rincon has encountered regulatory challenges that require
infrastructure evaluations and enhancements. Global Water possesses
the technical expertise and state-of-the-art integrated technology
solutions which can ensure regulatory compliance and that local
communities have access to safe and environmentally sustainable
water services.
“The close proximity of these facilities to our existing service
area makes them a logical extension of our utility footprint,”
noted Chris Krygier, chief strategy officer for Global Water
Resources. “We see them both as low-risk tuck-in acquisitions, and
we are in discussions with a number of additional utilities that
also fit this profile. Over the course of the next year, we will
continue to seek out additional acquisitive opportunities that are
synergistic to our growing portfolio of water utility companies and
our existing regional footprints, which would be beneficial for the
people and communities we serve.”
The company anticipates filing for regulatory approval of these
acquisitions in March 2021, with approval by the second half of the
year. About Global Water ResourcesGlobal 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), an integrated
approach to managing the entire water cycle by owning and operating
water, wastewater and recycled water utilities within the same
geographic area to maximize the beneficial use of recycled water.
TWM conserves water by using the right water for the right use and
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 Liebman CFO and SVPTel
(480) 999-5104
mike.liebman@gwresources.com
Investor Relations Contact:Ron Both or Grant
StudeCMA Investor RelationsTel (949) 432-7566Email contact
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