Epcor Acquires Arizona Water Company

Epcor has signed an agreement to acquire all the outstanding shares of Chaparral City Water Company of Arizona, a subsidiary of American States Water Company, for $35m.

As well as staff, the Canadian water company will acquire the assets of Chaparral, which include a water distribution system and 15 million gallons per day water treatment plant in Fountain Hills, Arizona.

The Alberta-headquartered Epcor, which serves one million people in over 70 communities in Western Canada, says the acquisition will help it expand into Arizona’s water market.

The acquisition, which includes assumption of approximately $6m of long-term debt, will be funded by cash or debt financing.

The acquisition is expected to be completed in 2011.