Joplin-based Missouri American Water (NYSE: AWK) on Aug. 30 purchased the assets of Tri-States Utility Inc., adding some 3,500 water customers in the Branson area.
The Missouri Public Service Commission on Aug. 21 approved Missouri American Water’s application for ownership, and the $3.4 million deal closed nine days later, according to a company news release.
Christie Barnhart, Missouri American Water’s external affairs manager, said the assets included Tri-States’ water distribution system and wells, as well as treatment and booster systems. Missouri American Water took over operations at 4 p.m. on Aug. 30, and she said two of Tri-States’ six employees were retained after completing internal and external interviews.
Missouri American Water first entered the Branson utility market by purchasing Aqua-Missouri districts in 2011. Later that year, the company invested $1.6 million to buy Roark Water & Sewer, which serves StoneBridge Village near Silver Dollar City. Barnhart said six Missouri American Water employees already work to serve Branson area customers, now totaling 6,000.
“The acquisition of this system increases Missouri American Water’s presence in the Branson area significantly,” senior operations manager Matthew Barnhart said in the release. “Growth of our existing customer base can ultimately help to improve water service to our customers.”
The company, an investor-owned subsidiary of New Jersey-based American Water Works Co. Inc., provides water or wastewater services to roughly 1.5 million Missourians. A public meeting for customers is scheduled Sept. 5 at the former Tri-States Utility office, 302 Terrace Road in Branson, according to the release.
Earlier in August, American Water Works completed at least five other acquisitions, buying three water systems in Pennsylvania, and one each in Illinois and Iowa, representing more than $9 million in purchases. The company, which provides water services to some 14 million people, is working through a capital expenditure program to invest up to $1 billion per year, including acquisitions, according to an August presentation to investors.
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