Pennsylvania American Water to Acquire Sadsbury Township’s Wastewater System

Pennsylvania American Water, a subsidiary of American Water has signed an agreement to acquire the wastewater assets of Sadsbury Township in Chester County. The total value of the transaction is approximately $9.25 million. The Sadsbury wastewater system serves approximately 1,000 customers.

“Our company and our employees have been the long-time water service provider for this community, and we are excited for the opportunity to be the future provider of wastewater service to our Sadsbury customers,” said Pennsylvania American Water President Jeffrey McIntyre.

Pennsylvania American Water and the township will seek approval of the acquisition from the Pennsylvania Public Utility Commission (PUC) and other necessary approvals from the Pennsylvania Department of Environmental Protection.

“This acquisition will enable us to bring a more regional approach to wastewater solutions for western Chester County, where our Coatesville Area Wastewater Treatment Plant already serves more than 6,000 local customers,” said McIntyre. “We can also capitalize on increased efficiencies and economies of scale while providing the technical expertise and financial resources needed to ensure that Sadsbury’s system complies with all environmental regulations.”

Under the purchase agreement, there will be no immediate change to customers’ wastewater rates.

Pennsylvania American Water’s purchase of the sewer system will enable Sadsbury Township to eliminate all debt, which is approximately $2.5 million.

The company expects to close the transaction by the end of the 2018, pending regulatory approvals.

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