Global Water Resources has signed a definitive agreement to acquire Red Rock Utilities, an operator of a water utility and a wastewater utility with service areas in the Pinal and Pima counties of Arizona. The definitive agreement follows the Global Water's letter of intent to acquire the utilities which was announced in June. Combined, the acquisitions will add 1,654 connections and approximately 9 square miles of service area, which generates more than $1M in revenue annually. In addition, Red Rock Utilities is currently in a revenue phase-in period stemming from their last rate case, wherein it is projected to increase revenue by over $300,000 once rates are fully phased in. The closing is subject to customary conditions, including the approval of the Arizona Corporation Commission, and is anticipated to occur in October.
Global Water Resources has signed a letter of intent to acquire a Class D water utility and a Class D wastewater utility. The company expects to close the acquisitions on an accelerated basis in the third quarter of 2018. To qualify as a Class D, a utility in Arizona must have annual operating revenues of at least $250,000 but not more than $999,999 per year.
Global Water Resources, Inc. (NASDAQ:GWRS) (TSX:GWR), a pure-play water resource management company, has signed a definitive agreement to acquire Turner Ranches Water and Sanitation Company, a non-potable irrigation water utility in Mesa, Arizona. The acquisition will add 960 residential irrigation customers and approximately seven square miles of service area, including services to three golf courses. It is also anticipated to add nearly $1 million in revenue. Global Water expects to close the acquisition in the second quarter of 2018.