Connecticut Water enters merger agreement with Avon Water Company
The Avon Water Company, or AWC, and Connecticut Water Service announced that the parties have reached an agreement for Avon Water Company to join Connecticut Water. Connecticut Water is a parent holding company based in Clinton, Connecticut which conducts its regulated water operations in Connecticut and Maine through its operating subsidiaries, The Connecticut Water Company and The Maine Water Company. The agreement provides for the payment of stock consideration valued at approximately $26.2M and a cash payment of $6.2M for a total payment to shareholders of $32.4M. Holders of Avon Water Company common stock will receive 80% of the transaction consideration in the form of shares of CTWS common stock in a tax-free exchange. The transaction reflects a total enterprise value of approximately $36.6M, with the $32.4M paid to shareholders and the assumption by Connecticut Water of approximately $4.2M in long-term debt of Avon Water Company.