United Water to sell Arkansas water operations to Liberty Utilities

United Water, a subsidiary of US-based Suez Environment, has agreed to sell its regulated water operations based in Arkansas to Canadian company Liberty Utilities, in a deal worth $28.6m.

United Water chief executive officer Bertrand Camus said that the sale of the firm’s regulated business in Arkansas is in line with United Water’s strategy to optimise its portfolio of regulated companies and municipal contracts.

"We have been serving the residents and businesses of the Pine Bluff community for nearly 20 years and we appreciate the trust our customers had in our ability to provide them with clean, safe and reliable drinking water," Camus said.

"We’re very confident that our customers will be in good hands when this transaction closes as Liberty Utilities Co. is an outstanding company that will serve Pine Bluff well," he added.

United Water Arkansas has 13 wells, 388 miles of mains, three water treatment facilities with a combined capacity of 20 million gallons per day, and is regulated by the Arkansas Department of Health and the Arkansas Public Service Commission.

The utility, which is in bulk water sales agreements with the community of White Hall and the Hardin Water Association, provides domestic water service to nearly 49,000 people in Pine Bluff, Arkansas along with sewer and solid waste billing services.

The transaction, which is subject to regulatory approval by the Arkansas Public Services Commission, is likely to close in the fourth quarter of 2012.

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Image: In order to optimise its portfolio of regulated companies and municipal contracts, United Water plans to sell its utility in Arkansas .Photo: United Water.